Summary of Financial Results for Fiscal Period Ended June 30, 2020 (Infrastructure Fund)
Infra st ruct ure Fund Issue r
S e c u r i t i e s C o d e
R e p r e s e n t a t i v e
Asset Management Company
R e p r e s e n t a t i v e
C

o

n

t

a

c

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Scheduled filing date of securities
reportSupplementary materials forfinancial results
Financial results briefing session

August 14, 2020
L i s t e d S t o c k Tokyo Stock
Canadian Solar Infrastructure Fund, Inc.
E x c h a n g e Exchange
9284
URL
https://www.canadiansolarinfra.com/(Title)Executive Director(Name) Tetsuya Nakamura
Canadian Solar Asset Management K.K.
CEO and Representative(Title)(Name) Tetsuya Nakamura
Director(Title)Chief Financial Officer(Name) Hiroshi Yanagisawa
Tel.
03(6279)0311
Scheduled date ofcommencement of cash
distribution payment

September 28, 2020

September 15, 2020

YES
YES（For institutional investors and analysts）(Amounts are rounded down to million yen)
1. Status of Management and Assets for Fiscal Period Ended June 30, 2020 (from January 1, 2020 to June 30, 2020)(1) Management Status(Percentage figures are the rate of period-on-period change)
Operating revenues
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal period ended
2,331
11.6
840
20.5
692
29.5
691
29.5
Jun. 2020
Fiscal period ended
2,088
(4.4)
696
(14.7)
534(24.8)
534(24.8)
Dec. 2019
Rate of returnon equity

Profit per unit
Fiscal period ended
Jun. 2020
Fiscal period ended
Dec. 2019

Ordinary profit
to total assets ratio

Ordinary profit tooperating revenue ratio

yen

%

%

%

2,992

3.2

1.4

29.7

2,309

2.4

1.1

25.6

(2) Status of Cash Distributions
Distributions
Total
per unit
distributions Distributions in(excluding(excludingexcess of
distributions
distributions
earnings perin excess ofin excess ofunit
earnings)
earnings)
Yen
Million yen
Yen
Fiscal period
ended Jun. 2020
Fiscal period
ended Dec. 2019

Million yen

Distributions
per unit(including
distributions
in excess ofearnings)
Yen

%

%

2,992

691

708

163

3,700

855

100.0

3.2

2,310

534

1,340

309

3,650

843

100.0

2.4

Total
distributions
in excess ofearnings

Total
distributions(including
distributions
in excess ofearnings)
Million yen

Payout ratio

Ratio ofdistributions to
net assets(Note 1) The payout ratio is calculated according to the following formula.
Payout ratio = distributions per unit (excluding distributions in excess of earnings) / profit per unit x 100(Note 2) The payout ratio and the ratio of distributions to net assets are calculated based on the numerical data excluding
distributions in excess of earnings.
(Note 3) Total distributions in excess of earnings are all refunds of investments that constitute distributions on the decrease ofcapital contribution under the tax law.
(Note 4) The ratio of the decrease in net assets upon distributions in excess of earnings (refunds of investments that constitutedistributions on decrease of capital contribution under the tax law) is 0.015 for the fiscal period ended December 31,
2019 and 0.008 for the fiscal period ended June 30, 2020. In this regard, the ratio of the decrease in net assets is
calculated according to Item 4, Paragraph 1, Article 23 of the Ordinance for Enforcement of the Corporation Tax
Act.

- 1 -

(3) Financial Position
Total assets
Million yen

Net assets
Million yen

49,13250,069Fiscal period ended
Jun. 2020
Fiscal period ended
Dec. 2019

Equity ratio

Net assets per unit%

yen

21,73144.2

93,99821,88343.7

94,656(4) Status of Cash Flows

Million yen

Million yen

Million yen

Cash and cash
equivalents at the endof the fiscal period
Million yen

2,059

(21)

(1,884)

2,619

1,045

(4,653)

3,607

2,466

Cash flows fromoperating activities
Fiscal period ended
Jun. 2020
Fiscal period ended
Dec. 2019

Cash flows frominvesting activities

Cash flows fromfinancing activities

2. Forecasts of Management Status for Fiscal Period Ending December 31, 2020 (from July 1, 2020 to December 31, 2020), Fiscal
Period Ending June 30, 2021 (from January 1, 2021 to June 30, 2021) and Fiscal Period Ending December 31, 2021 (from July 1,
2021 to December 31, 2021)(Percentage figures are the rate of period-on-period change)
Operating revenues Operating income

Fiscal period
ending Dec.
2020
Fiscal period
ending Jun.
2021
Fiscal period
ending Dec.
2021

Ordinary income

Distributions perunit (excluding
distributions inexcess of
earnings)

Net income

Distributions inexcess of earnings
per unit

Distributions perunit (including
distributions inexcess of
earnings)

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

yen

yen

yen

2,426

4.1

887

5.6

706

2.0

705

2.0

3,052

648

3,700

2,366

(2.5)

823

(7.2)

674

(4.6)

673

(4.6)

2,912

788

3,700

2,428

2.7

871

5.9

706

4.8

706

4.9

3,055

645

3,700

(Reference)
Fiscal period ending December 31, 2020 (184 days): Forecast total number of investment units issued and outstanding at endof the period: 231,190 units, Forecast profit per unit: 3,052 yen
Fiscal period ending June 30, 2021 (181 days): Forecast total number of investment units issued and outstanding at end of
the period: 231,190 units, Forecast profit per unit: 2,912 yen
Fiscal period ending December 31, 2021 (184 days): Forecast total number of investment units issued and outstanding at endof the period: 231,190 units, Forecast profit per unit: 3,055 yen* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies associated with amendments to accounting standards, etc.: No(ii) Changes in accounting policies other than (i):No
(iii) Changes in accounting estimates:No(iv) Retrospective restatement
No

- 2 -

(2) Total number of investment units issued and outstanding(i) Total number of investment units issued and outstanding(including treasury units) at end of period(ii) Number of treasury units at end of period

Fiscal period
Jun. 2020
Fiscal period
Jun. 2020

231,1900

Fiscal period
Dec. 2019
Fiscal period
Dec. 2019

231,1900(Note) For the number of investment units based on which profit per unit is calculated, please refer to “Notes on regarding
per unit information” on page 30 below.

*

Explanation of Appropriate Use of Forecast of Management Status and Other Matters of Special Note
Forecast of management status and other forward-looking statements contained in this document are based on information that iscurrently available and certain assumptions that are deemed reasonable by Canadian Solar Infrastructure Fund. Accordingly, theactual management status, etc. may differ materially due to various factors. In addition, the forecast is not a guarantee of theamount of cash distributions. For details of the assumptions underlying the forecast of management status, please refer to“Assumptions Underlying Forecast of Management Status for Fiscal Period Ending December 31, 2020 (July 1, 2020 to
December 31, 2020), Fiscal Period Ending June 30, 2021 (January 1, 2021 to June 30, 2021) and Fiscal Period Ending December
31, 2021 (July 1, 2021 to December 31, 2021),” described on or after page 9 below.

- 3 -1. Associated Corporations of Canadian Solar Infrastructure Fund
Disclosure is omitted because there have been no significant changes from the description in the latest securities report (submitted
on September 27, 2019).

2. Management Policy and Management Status(1) Management Policy
Disclosure is omitted because there have been no significant changes from the description in the latest securities report (submitted
on September 27, 2019).
(2) Management Status
I. Overview of the Fiscal Period under Review
a. Brief History of Canadian Solar Infrastructure Fund
Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”) was established on May 18, 2017 with money
invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K. (hereafter referred to as the “AssetManager”) as the founder under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951 including
subsequent amendments; hereinafter referred to as the “Investment Trusts Act”). Registration with the Kanto Local Finance
Bureau was completed on June 9, 2017 (registration number 127, filed with the Director of the Kanto Local Finance Bureau).
CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017, listed its investment
units on Tokyo Stock Exchange Inc.’s (hereinafter referred to as the “Tokyo Stock Exchange”) Infrastructure Fund Market on
October 30, 2017 (security code: 9284), and issued new investment units (2,890 units) through third-party allotment on
November 28, 2017.
In addition, CSIF issued new investment units (46,667 units) through public offering on September 6, 2018 and issued newinvestment units (2,333 units) through third-party allotment on October 4, 2018. As a result, the total units issued at the end of
the fiscal period under review (as of December 31, 2019) were 231,190 units.
b. Investment Environment
During the fiscal period under review, the Japanese economy felt the brunt of the COVID-19 pandemic on the demand side
during the first half, with consumer spending and exports weakening due to the voluntary suspension of normal economic activity,
supply constraints caused by the suspension of operations at plants in China, and the deterioration of overseas economies, andJapan’s real GDP fell by 2.2% on an annualized basis and 0.6% quarter on quarter in January-March. In the second half, theeffects of the COVID-19 pandemic became starkly evident and Japan’s real GDP is expected to fall by more than 20% during
the April-June quarter.
The stock market in Japan fell slightly in January amid growing fears of a global recession triggered by the spread of the
COVID-19, which emerged in Wuhan, China, despite a temporary upturn in investor confidence following the signing of the“phase 1” U.S.-China trade deal. Subsequent developments such as sharp increases in infections in Europe and the U.S., theWHO pandemic declaration, and concern over the global economic impact of entry restrictions from Europe imposed by the U.S.
caused shares to fall across the board, with the Nikkei average also briefly breaking below 17,000 yen. Compared with its end2019 level, the Nikkei average fell 20%, its biggest drop since 2008 after Lehman's bankruptcy filing. In the second quarter, theworld’s major stock markets trended up, reflecting growing moves to reopen economies and hopes that outbreaks in Europe andthe U.S. had peaked as well as positive market reactions to stimulus packages around the world in April and expectations for a
gradual resumption of economic activity amid the growing tendency to lift restrictions in Europe and the U.S. in May. In June,
stock markets generally remained firm, with prices recovering to 70-80% of pre-crash levels, as the world economy was deemed
to be over the worst and signs of economic recovery driven by advanced nations started to emerge.
Meanwhile, the Infrastructure Fund Market, like the J-REIT market, fell sharply in March due to an increase in investor risk
aversion in face of the spread of COVID-19, but then rallied strongly for the remainder of the first half, as the market responded
positively to the announcement of stimulus packages in Japan and overseas. The Infrastructure Fund Market subsequently fell
again on negative reaction to the economic impact of COVID-19 and the declaration of a state of emergency. However, sinceMay, the market has recovered alongside the lifting of the state of emergency and the resumption of economic activity. Moreover,the Infrastructure Fund Market has recovered to a greater extent than the J-REIT market, partly because of investors who focus
on investments which are less susceptible to the impact of COVID-19.
Looking at the impact of COVID-19 on the power demand-supply environment in Japan, according to Mizuho Securities, overthe period from April through to June 28, power demand was down 5.3% on average for nationwide, down 8.8% for Chubu
Electric Power, and down 2.9% for Kyushu Electric Power. Meanwhile, monthly changes in demand by demand area show a- 4 -similar trend in all regions, with demand down around 3% year on year in June, improving from a contraction of around 9% in
May. Regional data reveals that Chubu saw the largest decline, followed by Hokuriku and then Chugoku and that three regions
saw an upswing in demand namely Okinawa, Shikoku and Kyushu. Prices on the Japan Electric Power Exchange (JEPX) were
down around 3 yen per kWh on a year on year basis in the April-June quarter and a situation in which monthly average prices bytime zone remained far below past levels persisted both in eastern and western regions.
In the environment surrounding renewable energy power generation facilities (stipulated in Article 2, Paragraph 3 of the Act
on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities [Act No.
108 of 2011, including subsequent amendments; hereinafter referred to as the “Act on Renewal Energy Special Measures”][excluding those that fall under real estate]; hereinafter referred to as “renewable energy power generation facilities”) held by
CSIF, the output curtailment implemented by Kyushu Electric Power Co., Inc. (hereinafter referred to as “Kyushu ElectricPower”), which requires renewable energy operators to temporarily suspend power generation through photovoltaic power
generation facilities and wind power generation facilities (Note), was resumed for the first time since May 13, 2019 across
Kyushu Mainland from October 13, and was implemented for 8 days including weekdays in January, 15 days in February, 19days in March, 22 days in April, 16 days in May and 2 days in June.
Sendai Nuclear Power Plant Unit No.1 and Unit No. 2 suspended operations at their nuclear reactors on March 16 and May
20 respectively to install anti-terrorism facilities called facilities for dealing with specific severe accidents, etc. Unit No1 andUnit No. 2 are expected to resume operations at the end of December 2020 and January 2021 respectively.
On June 25,the Act of Partial Revision of the Electricity Business Act and Other Acts for Establishing Resilient and Sustainable
Electricity Supply Systems (hereinafter referred to as the “Act”), which covers amendments to acts such as the Electricity
Business Act, the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources by Electricity Utilities, and the Act on the Japan Oil, Gas and Metals National Corporation, Independent Administrative
Agency (hereinafter the “JOGMEC Act”) was enacted. The parts of the Act concerning partial revision of the Act on Special
Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities are due to go into effecton April 1, 2022.
The main points of the Partial Revision of the Electricity Business Act are to (i) require electricity transmission/distribution
businesses to jointly formulate action plans on their collaboration in disaster responses, provide information to municipalities
and other related entities in disaster response, and achieve efforts for systematic renewal of the existing facilities; (ii) add to theservices provided by the Organization for Cross-regional Coordination of Transmission Operators (OCCTO) new services toformulate a Plan on Development of Cross-Regional Grids; (iii) inaugurate a charging system for wheeling services in which the
METI Minister should regularly approve the upper threshold of business incomes based on the investment plans and otherdocuments submitted by businesses and the Minister should encourage the businesses to introduce more efficient costs within
the threshold; and (iv) take measures for defining distribution businesses under laws including small distributed energy resources,in specific service areas.
The main points of the partial revision of the Act on Special Measures Concerning Procurement of Electricity from
Renewable Energy Sources by Electricity Utilities (REA) are (i) to change the title to “Act on Special Measures Concerning
Promotion of Utilization of Electricity from Renewable Energy Sources” (hereinafter the REA after amendment by the Act isreferred to as the “Revised Act”);(ii) to establish a Feed-in-Premium (FIP) scheme in addition to the existing FIT scheme, a
new scheme in which renewable energy generators are able to receive a certain level of premium based on the market price; (iii)
to establish a system in which part of the expenditures for fortifying electricity grids necessary for expanding the introduction ofrenewable energy into businesses, e.g., regional interconnection lines is to be supported based on the surcharge system acrossJapan; (iv) to impose obligations on renewable energy generators to establish an external reserve fund for the expenditures fordiscarding their facilities; and (v) to introduce a system for nullifying approvals for projects that do not commence operation
within a certain period after obtaining the FIT/FIP approval to rectify a situation in which grids are not used effectively.
Finally, the main points of the partial revision of the JOGMEC Act are (i) to establish new functions of Japan Oil, Gas andMetals National Corporation, Independent Administrative Agency (hereinafter referred to as “JOGMEC”) in which, in case of
emergencies, JOGMEC will, at the request of the METI Minister based on the provisions of the Electricity Business Act, procure
fuels for electricity generation; and (ii) to enable JOGMEC to gain additional functions, e.g., equity capital in transshipment or
storage terminals for natural gases and in projects for mining and refining metallic minerals in order to secure diverse
procurement sources of LNG and stable supply of metallic minerals.
Whilst not included in the revisions under the Act, the introduction of so-called power producer-side base charges is being
considered. Power producer-side base charges will be imposed on a per-kW basis to ensure that the power producers which use
power grids also bear a portion of the fixed costs for transmission and distribution facilities currently borne by retail electricity
business operators on the demand side through wheeling charges. If power producer-side charges are imposed on FIT renewable- 5 -energy sources, power producers which sell electricity under the FIT scheme will have no way to transfer costs to a third party
during the FIT period and their cashflows will be negatively affected unless adjustment measures are introduced for projects thathave already obtained FIT approval. The System Design Working Group of the Electricity and Gas Market SurveillanceCommission is currently examining the detailed design of the system, aiming for introduction in FY2023. Regarding the specificconditions and extent of relief measures with power producers which sell electricity under the FIT scheme, the Calculation
Committee for Procurement Price, etc. convened on December 27, 2019 discussed cuts to wheeling charges (0.5 yen per kWhon average) and adjustment measures through surcharges on the assumption that adjustment through the transfer of costs ispossible for FIT renewable energy sources in the same way as for other energy sources. However, arguments both for and against
were presented and it was decided that the issues should be summarized and discussed again based on the perspectives of thenational burden and the foreseeability of investment and it remains to be seen whether adjustment measures through surcharges
will be introduced. Subsequently, in deliberations in the Diet, Hiroshi Kajiyama, Minister of Economy, Trade and Industry
stated in an answer at a meeting of the Committee on Economy, Trade and Industry at the House of Representatives held on May
20, 2020 “it is also true that, depending on the system design, renewable energy producers whose usage of transmission anddistribution facilities is low will face higher costs. Therefore, in my view, some degree of consideration and creativity is required
to ensure that an excessive burden is not placed on existing FIT power producers.” Then, at a meeting of said Committee heldon May 22, 2020, a supplementary resolution was passed upon approval of the Act stating that “on consideration of power
producer-side base charges, the situation of renewable energy power producers approved under the feed-in-tariff scheme will betaken into consideration and due consideration will also be given to ensure that renewable energy power producers are notunjustly disadvantaged compared with other power producers. In addition, at a post-cabinet meeting news conference held on
July 3, 2020, METI Minister Kajiyama stated with respect to the power-producer-side base charges currently being consideredfrom the viewpoint of encouraging efficient adoption of renewable energy through promotion of efficient use of power grids,that he has issued instructions for a review to ensure that the framework is also consistent with the review of rules surrounding
use of trunk power-transmission lines (being considered to accelerate the adoption of renewable energy whilst reducing existing
inefficient thermal power sources).
Under the Revised Act, approved power producers are obliged to set aside funds with the Organization for Cross-regional
Coordination of Transmission Operators (OCCTO) to cover the cost of decommissioning solar power generation facilities anddisposal of waste materials. However, the Revised Act states that the projects subject to reserve requirements will be designatedby METI and the amount to be reserved and the frequency of withholding of decommissioning costs will be prescribed by a
METI ordinance. Indeed, the details of a system for ensuring the reserve of decommissioning costs for solar power generation
facilities have been considered on seven occasions since April 2019 at the Advisory Committee for Natural Resources and Energy,
the Energy Efficiency and Conservation Subcommittee, the Subcommittee on New Energy and the Working Group on Securing
Costs for Decommissioning and Disposal of Renewable Power Generation Facilities and interim findings were published on
December 10, 2019. The interim report states that (a) the amount to be reserved for projects approved prior to FY2019 for which
the procurement price is already decided will be set at the level of decommissioning costs assumed upon calculation of the
procurement price by the Calculation Committee for Procurement Price, etc. ; (b) the amount of external reserves will be theproduct of multiplying a standard price (on a kWh/yen basis) equivalent to the aforementioned decommissioning costs per unitof power generated adjusted for facility usage and the actual amount of electricity sold under the FIT scheme, and the funds
should be reserved on a monthly-basis starting 10 years before the end of the procurement period; and (c) private reserves will
only be permitted if operators prepare and publish business plans, etc., for the implementation of long-term and stable power
generation projects, and also meet six other requirements, and the consideration of whether an operator is eligible to internallyreserve decommissioning costs in terms of financial and organizational integrity, etc. should consider the various businessformats adopted, including listed infrastructure funds.
The Revised Act also includes a new section titled “Supply of Renewable Energy through Market Transactions” and whilst a
Feed-In-Premium (“FIP”) system will be put in place under this section, under the Revised Act, the only projects that will be
eligible for the existing FIT scheme will be renewable energy generators which meet so-called regional use requirements. The
FIP scheme will allow renewable energy generators to sell their electricity through a wholesale power exchange or through overthe-counter transactions whilst receiving an additional premium (defined as a “Subsidy for Supply Promotion” under the RevisedAct) i.e. the difference between the basic tariff (FIP price) (fixed) and a tariff based on market prices (reference tariff) (fixed fora given period, sliding in the long term). The category to which the FIP scheme will apply is called the “subsidy category” andis to be designated by the Minister of Economy, Trade and Industry, respecting the opinion of the Procurement Price Calculation
Committee. However, the Interim Report by the Subcommittee on System Reform for Renewable Energy as Main Power Source(hereinafter referred to as the “Subcommittee for Renewable Energy as Main Power Source”) under the Strategic Policy
Committee of the Advisory Committee for Natural Resources and Energy published in February 2020 described the subsidy- 6 -category subject to the FIP scheme as “energy sources which are expected to grow into competitive energy sources (competitiveenergy sources)” and “energy sources whose generation costs can be steadily reduced (これでOK)and energy sources which canbe used as cheap energy sources” and specifies mega-solar projects and wind projects. Moreover, the discussions and interim
report of said subcommittee suggest that consideration is being given to making the reference price fixed for a given period but
variable in the long term to simultaneously ensure investment incentive and energy generation behavior conscious of market
prices. However, the photovoltaic power generation facilities, etc. owned by CSIF have already started selling electricity under
the FIT scheme and, judging from discussions in the Subcommittee for Renewable Energy as Main Power Source and answers
in Diet deliberations, these facilities, etc. are likely to remain eligible under the current FIT scheme and there is unlikely to be
any transition to the FIP system. Therefore, even if eligibility for the FIT scheme is limited as described above, the feed-in-tariff
prices of the photovoltaic power generation facilities owned by CSIF and currently in operation are unlikely to be affected.
Finally, under the Revised Act, a new system for nullifying FIT/FIP approval of the Minister of Economy, Trade and Industry
for a project that has not started operation within a certain period of time after approval (hereinafter referred to as “expiration ofcertification”) will be newly introduced from the viewpoint of freeing up grid capacity saved for projects that have not started
operation for years. The period of time for FIP/FIT approvals to be nullified is not specified in the Revised Act and will beprescribed in a METI ordinance. However, the photovoltaic power generation facilities, etc. owned by CSIF have already started
selling electricity under the FIT scheme and even when the Revised Act goes into effect and expiration of certification is
introduced, certification of the photovoltaic power generation facilities, etc. owned by CSIF will not be nullified as a result.
(Note 1) “Renewable energy generation facilities, etc.” refers collectively to renewable energy generation facilities, and real estate, real estate leases(includes subleases) and land lease rights (hereinafter referred to as the “site, etc.”) necessary to install maintain and operate renewable energy
generation facilities. The same shall apply hereunder.
(Note 2) “Photovoltaic power generation facilities” refers, among renewable energy power generation facilities, to those that generate electricity using
sunlight as an energy source, and "wind power generation facilities" refers to those that generate power using wind power, among otherrenewable energy power generation facilities.
“Photovoltaic power generation facilities, etc.” refers collectively to photovoltaic power generation facilities, and real estate, real estate leases(includes subleases) or land lease rights necessary to install maintain and operate photovoltaic power generation facilities. The same shallapply hereunder.

c. Management Performance
During the previous fiscal period, CSIF acquired one facility (panel output (Note 3) of 10.8MW and acquisition price (Note4) of ¥4,570 million) on November 29, 2019 with using borrowings and cash on hand. As a result, CSIF held a portfolio consistingof a total panel output of 119.8MW, a total acquisition price of ¥48,850 million and a total price (Note 5) of ¥51,490 million asof the end of the previous fiscal period.
During the fiscal period under review, there was no acquisition and, as a result, CSIF held a portfolio consisting of a total
panel output of 119.7MW, a total acquisition price of ¥48,850 million and a total price of ¥49,580 million as of the end of the
fiscal period under review and continued to be the largest operator among listed infrastructure funds.
(Note 3) “Panel output” shall mean output calculated by multiplying rated output per solar cell module (meaning the maximum output stated in
specifications of solar cell module) used in each solar energy facility by the total number of panels. The same shall apply hereunder.
(Note 4) “Acquisition price” shall mean the sale and purchase price (excluding outsourcing service fees and other acquisition expenses related to theacquisition of assets, property-related taxes, urban planning taxes, consumption taxes and other fees and charges) described in the sale andpurchase agreement pertaining to each asset acquired. It shall be rounded down to the nearest one million yen. The same shall apply hereunder.
(Note 5) “Price” shall mean the intermediate value calculated by CSIF using the appraisal value of each power plant as of December 31, 2019 for theprevious fiscal period and as of June 30, 2020 for the fiscal period under review as stated in valuation reports obtained fromPricewaterhouseCoopers Sustainability LLC (for S-01 to S-18) or Ernst & Young Transaction Advisory Services Co., Ltd. (for S-19 to S21). The same shall apply hereunder.

d. Overview of Financing
In the fiscal period under review, CSIF made a contractual repayment at the end of the fiscal period under review, and theamount of borrowings as of the end of the fiscal period under review came to ¥25,831 million. Consequently, the ratio of interestbearing debt to total assets (ratio of interest-bearing debt to total assets at the end of fiscal period) was 54.8%.
On June 26, 2020, CSIF filed the shelf registration for its issuance of investment corporation bonds to Kanto Local Finance
Bureau and the comprehensive resolution on the bonds issuance was approved at its board of directors’ meeting.
(1) Type of bonds : Domestic unsecured investment corporation bonds(2) Amount to be issued : Up to ¥10 billion (the issuance can be divided into several times and tranches)- 7 -(3) Period of issuance : From July 4, 2020 to July 3, 2022
(4) Amount of each bond : JPY 100 million or more
(5) Use of proceeds : Acquisition of specified assets (defined in article 2, paragraph 1 of Act on Investment Trusts andInvestment Corporation (Act No. 198 in 1958, including amendments thereafter)), related costs to such acquisition,acquisition of rights accompanying investments into specified assets, repayment of loans, redemption of investment
corporation bonds (including short-term investment corporation bonds), repayment of security deposits and guarantees,
and working capital such as repair costs (including capital expenditures) related to assets under management.
(6) Collateral and guarantee : No collateral and no guarantee, and no assets are specifically reserved for the issued bonds.

e. Overview of Business Performance and Distributions
As a result of the management described above, the business performance in the fiscal period under review recorded operating
revenue of ¥2,331 million, operating income of ¥840 million (mainly due to the impact of unseasonable weather and curtailment
by Kyushu Electric Power), ordinary income of ¥692 million and net income of ¥691 million.
Pursuant to the cash distribution policy set forth in Article 47, Paragraph 1 of its Articles of Incorporation, CSIF shall
distribute an amount in excess of the amount equivalent to 90% of its distributable earnings as defined in Article 67-15 of the
Act on Special Measures Concerning Taxation.
In addition, distributions in excess of earnings are calculated on the premise that such distributions will generally be made inaccordance with the cash distribution policy prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset
management guidelines formulated as part of its internal regulations.
CSIF intends to make cash distributions to its unitholders for each fiscal period from free cash flow (hereinafter referred toas “FCF”) generated by its renewable energy power generation facilities, in amounts determined in the following manner. The
amount available for distribution shall be calculated by multiplying FCF, that is net cash flow (hereinafter referred to as “NCF”;
CSIF shall incorporate the total amount of NCF remaining after deducting distributions for the preceding fiscal periods incalculating NCF) to be vested to equity investors after deducting FCF payable to debt investors, by a certain ratio (hereinafterreferred to as “payout ratio”; The payout ratio for the 6th fiscal period is 95.0%.) determined by CSIF in light of the amount of
NCF for each fiscal period.
At the same time, CSIF intends to maintain a stable level of distributions for the time being. In determining the payout ratio
described above, CSIF will consider the forecast NCF for each fiscal period to realize that level of distributions.
In addition to a cash distribution within the range of profit, CSIF intends to make distributions in excess of earnings foreach fiscal period on a continuous basis in order to realize this policy.
In developing its performance forecast (including any revisions thereof) for each fiscal period, in the case where NCF
calculated from actual energy output in a fiscal period (hereinafter referred to as “actual NCF”; CSIF shall incorporate the total
amount of NCF remaining after deducting distributions for the preceding fiscal periods in calculating actual NCF) exceeds NCF
projected for the fiscal period (hereinafter referred to as “projected NCF”; CSIF shall incorporate the total amount of NCF
remaining after deducting distributions for the preceding fiscal periods in calculating projected NCF) on the basis of an energy
output value projected by professional specialists (P50) which forms the foundation for the calculation of rents with regard to
the renewable energy power generation facilities, CSIF intends to limit the cash distribution to the amount of projected NCF
multiplied by the payout ratio for said fiscal period.
On the other hand, in the case where actual NCF is equal to or below projected NCF, CSIF intends to make a cash distribution
for the fiscal period at the amount of actual NCF multiplied by the payout ratio.
Based on the above policy, CSIF determined to make a distribution for the fiscal period under review of ¥855,403,000,
equivalent to 94.7% of projected NCF for the period (¥902,632,000). This ratio is within the 95% ratio set at the beginning of
the period. As a result, distribution in excess of earnings is ¥163,682,520, after deducting dividends for the period of¥691,720,480. Dividend per investment unit is ¥3,700 for the fiscal period under review.
II. Outlook for the Next Fiscal Perioda. Outlook for the Future Management
Preliminary gross domestic product (GDP) data for October-December 2019 were announced and Japan's GDP shrankan annualized 6.3%, turning negative for the first time in five quarters. The contraction was the biggest since a 7.4% decline
marked in April-June 2014, reflecting the impact of the consumption tax hike and Typhoon No. 19. It has been pointed out that- 8 -the Japanese economy and the world economy may fall into a deep recession due to the domestic and international spread of
COVID-19, which emerged in December last year. In the financial markets, global stocks including Japanese stocks fell
dramatically in March due to the escalation of COVID-19 cases worldwide. Since then, global stock markets show an upward
trend which varies from country to country, thanks to the measures taken by central banks, such as cuts to interest rates,
quantitative easing and increased asset purchases, as well as moves to resume economic activity. However, whenever news abouts
the COVID-19 pandemic emerges, stock prices tend to fall sharply, and market volatility has increased.
Meanwhile, according to statistics on COVID-19 global cases released by John Hopkins University in the U.S., the total
number of confirmed cases worldwide had reached around 10.51 million as of July 2, 2020, with COVID-19 deaths reachingaround 510 thousand. Data on daily confirmed cases also shows that COVID-19 continues to spread. Around six months on fromwhen the COVID-19 outbreak began, WHO warned on June 29 that “globally the pandemic is actually speeding up and the worst
could be yet to come.”
On March 16, 2020, G7 leaders held an emergency video conference call and issued a joint statement saying “we are mobilizing
the full range of instruments, including monetary and fiscal measures, to support the workers, companies, and sectors mostaffected,” and further stating that finance ministers and central banks would coordinate to develop monetary measures in orderto support economic and financial stability and “we will coordinate our efforts to delay the spread of the virus, including throughappropriate border management measures.” Under such conditions, the economies of Japan, the U.S. and Europe are all teeteringon the verge of a recession due to the COVID-19 pandemic and it will be important to assess whether the spread of COVID 19
will be halted in the future, the progress of clinical trials for a vaccine or “silver bullet” and the effectiveness of the full range offiscal policy instruments being mobilized by national governments.
Analysis of power supply and demand trends in light of the government’s declaration of a state of emergency due to COVID19 and its subsequent lifting, focusing on the impact on power demand most recently, shows that since late April the power
demand trend (year on year) has been improving, from year-on-year decline of around 9% in May to decline of around 3% in
June. However, it will probably take some time for economic activity to fully return to normal and for power demand to returnto previous levels.
With respect to the environment surrounding photovoltaic power generation facilities that are included in renewable energy
power generation facilities, as stated in “(I. Overview of the Fiscal Period under Review) b. Investment Environment” above,
the output curtailment that requires renewable energy operators to temporarily suspend power generation through photovoltaic
power generation facilities, etc. was resumed in areas under the jurisdiction of Kyushu Electric Power from October 2019.
However, if renewable energy adoption continues to expand in the future, output curtailment may also be implemented in otherregions besides the Kyushu region such as the Tohoku region and the Chugoku region.
Meanwhile, Kyushu Electric Power shut down the No. 1 and No. 2 reactors at Sendai Nuclear Power Plant on March 16 andMay 20, respectively, to install anti-terrorism facilities known as facilities for dealing with specific severe accidents, etc. Unit
No 1 and Unit No. 2 are expected to resume operations at the end of December 2020 and January 2021 respectively.
The detailed design of the power producer-side base charges to be imposed on renewable energy generators has apparently
not been discussed during the fiscal year under review even by the Calculation Committee for Procurement Price, etc. since thediscussions in December 2019, partly because of the COVID-19 outbreak. Discussions on the details of adjustment measures arelikely to be along the lines of the answers given by METI Minister Kajiyama and the supplementary resolution at the meeting of
the Committee on Economy, Trade and Industry at the House of Representatives described earlier. Moreover, the System Design
Working Group of the Electricity and Gas Market Surveillance Commission has said that it aims to introduce power producerside base charges in FY2023 because, based on the time needed to develop a system for general electricity transmission anddistribution utilities and to review existing over-the-counter transactions between power producers and retailers, it will takearound three years to design the charges.
As for the system of setting aside funds to cover the cost of decommissioning solar power generation facilities, the projects
subject to reserve requirements will be designated by METI and the amount to be reserved and the frequency of withholding ofdecommissioning costs will be prescribed by a METI ordinance. With regard to the conditions for permitting operators tointernally reserve decommissioning costs in particular, the interim report concerning decommissioning costs envisages project
finance projects, and discussions concerning eligibility in terms of financial and organizational integrity, etc. are expected to
unfold in such a way that listed infrastructure investment corporations will also be allowed to internally reserve decommissioning
costs.
Under the Revised Act, projects to which the FIP scheme will apply is called the subsidy category and are to be designated by
the Minister of Economy, Trade and Industry, respecting the opinion of the Procurement Price Calculation Committee andfollowing a public comment period. In preparation for integration of renewable energy into the power market, the exceptional
system under which renewable energy was exempted from market transactions under the FIT scheme will be reviewed and there- 9 -will be a shift towards a system under which renewable energy is traded on the market like other power sources and most largescale solar power generators and wind power generators, which are eligible for the FIP scheme under the Revised Act when it
goes into effect in April 2022, are likely to start selling electricity into the open market. In this case, renewable energy generators
will mostly likely sell the electricity they have produced based on an assumed price per kWh by one of the following methods:
on the wholesale electricity market themselves; in negotiated bilateral electricity transactions (OTC trading) with electricity
retailers; or in the wholesale electricity market through an aggregator.
b. Future Management Policy(i) External Growth Strategy
The Canadian Solar Group (Note 2), which is the Sponsor Group (Note 1) of CSIF, adopts the vertical integration modelthat has developed mainly in the photovoltaic power generation market in Europe and America and applies this model in the
global market, including Japan. CSIF considers that mutual cooperation between the Group and CSIF (engaging in investment
in and management of photovoltaic power generation facilities) through the Sponsor Group based on the vertical integration
model for the construction of the value chain with the aim of creating mutual value should lead to the enhancement of value
for unitholders.
Specifically, CSIF intends to increase assets by utilizing the preferential trading negotiation right granted by the Sponsor
Group and acquiring photovoltaic power generation facilities, etc. whose value is high from the pipelines of the Sponsor. In
addition, CSIF will aim to acquire photovoltaic power generation facilities, etc. held by persons other than the Sponsor Groupby utilizing the Sponsor Group’s networks of brokers and power producers.
(Note 1) The “Sponsor Group” collectively refer to (i) the Sponsor (Canadian Solar Projects K.K.), (ii) special purpose companies (they may behereinafter referred to as “SPCs”), partnerships or other funds with which the Sponsor has entered into the asset management service
agreement, (iii) Canadian Solar O&M Japan K.K. (it may be hereinafter referred to as “CSOM Japan”) and (iv) special purpose companies,
partnerships or other funds in which the Sponsor or its subsidiary own a majority interest. The same will apply below.
(Note 2) The “Canadian Solar Group” refers to the consolidated corporate group with Canadian Solar Inc. (headquartered in Canada) at the top towhich the Sponsor (Canadian Solar Projects K.K.) belongs.

(ii) Internal Growth Strategy
CSIF will contract out O&M (Note) to CSOM Japan, which is a wholly owned subsidiary of the Sponsor and provides
O&M services in Japan, in principle, for the availability of homogeneous O&M services to the extent that CSIF considers
essential. CSIF aims to thereby reduce the operational risk and operating costs by utilizing the services of CSOM Japan andplacing a blanket order, respectively.
By making the most of the strong operation and management abilities realized by utilizing the global monitoring platformof the Sponsor Group in the early discovery and repair of failures of power generation facilities, CSIF will aim to reduce theloss of power generation. In addition, CSIF will implement the appropriate repair and facilities replacement of assets undermanagement to maintain and enhance the value of assets from the medium- to long-term perspective, thereby securing stablerevenue in the medium to long term.
In addition to the strategies above, as a result of efforts in terms of sustainability, CSIF obtained the following evaluationfrom the Japan Credit Rating Agency, Ltd. (JCR) regarding the green finance framework.
Date of
Evaluating Agency
Evaluation
Evaluation
May 11, 2020
JCR
OverallGreen 1 (F)Greenness (use of proceeds)g 1 (F)Management, Operation and Transparency
m 1 (F)(Note) “O&M” is an abbreviation of Operation & Maintenance. The same will apply below.

(iii) Financial Strategy
To secure stable revenue and ensure the growth of the managed assets of CSIF, CSIF will consider financing by public
offering, borrowings and other means in the acquisition of new assets, while watching changes in the financing environment
closely.
CSIF’s credit ratings and bond ratings are described as below.
CSIF’s Credit Rating and Bond Rating
Rating Agency

Rating Subject- 10 -

Rati
ng

Rating Outlook

Japan Credit Rating Agency,
Ltd. (JCR)

Long-term Issuer Rating

A

StableThe 1st Unsecured Investment Corporation BondA-

Rating and Investment
Information, Inc. (R&I)

Long-tern Issuer Rating

A-

Stable- 11 -

c Forecasts of Management Status
The forecast of management status for the fiscal period ending December 31, 2020 (July 1, 2020 to December 31, 2020), thefiscal period ending June 30, 2021 (January 1, 2021 to June 30, 2021) and the fiscal period ending December 31, 2021 (July 1,
2021 to December 31, 2021) is as follows. For details of the assumptions underlying the forecast of management status, pleaserefer to “Assumptions Underlying Forecast of Management Status for Fiscal Period Ending December 31, 2020 (July 1, 2020 to
December 31, 2020), the fiscal period ending June 30, 2021 (January 1, 2021 to June 30, 2021) and the fiscal period ending
December 31, 2021 (July 1, 2021 to December 31, 2021)” described on or after page 14 below.

Fiscalperiodending Dec.
2020
Fiscalperiodending Jun.
2021
Fiscalperiodending Dec.
2021
Ⅲ

Distributions
Distributions
per unit
per unit
Distributions in(excluding(includingexcess of
distributions
distributions
earnings per unit
in excess ofin excess ofearnings)
earnings)

Operatingrevenues

OperatingincomeOrdinary income

Net income

million yen

million yen

million yen

million yen

yen

yen

yen

2,426

887

706

705

3,052

648

3,700

2,366

823

674

673

2,912

788

3,700

2,428

871

706

706

3,055

645

3,700

Facts arising after the settlement of accounts
Acquisition of assets
CSIF will acquire the assets below on September 1, 2020 (Note 1), in accordance with the basic policy of asset management
defined in the terms and conditions of CSIF, upon obtaining the approval of CSIF’s board of directors’ meeting on August 14,
2020. The finance for this acquisition is not yet determined.
Asset no.
(Note 2)Name of project(Note 3)

Type of asset

Location(Note 4)

Acquisition price (JPY
million) (Note 5)

S-22

CS Ishikari
Shinshinotsu-muraPower Plant

Trust beneficiaryinterest

Ishikari-gun,
Hokkaido

680

CS Hokkaido
Ishikari G.K.

S-23

CS Osaki-shi
Kejonuma Power
Plant

Trust beneficiaryinterest

Osaki-shi,
Miyagi208

CS Miyagi
Kejonuma G.K.

Total

Seller888(Note 1) The date of acquisition may be changed in the period from September 2, 2020 to October 31, 2020 due to required time to conduct necessary
procedures (including process to change the method of acquisition) for the acquisition.
(Note 2) Asset number is assigned to the projects to be acquired, based on the classification of the renewable energy. “S” denotes a solar energy
project.
(Note 3) “CS” is the abbreviation for Canadian Solar.
(Note 4) Based on the land or a parcel of the land upon which the solar energy facility is located, as described in the property registry. The address is
described up to the city or district level.
(Note 5) Anticipated acquisition price is as described in the purchase agreements (excluding acquisition expenses such as the payment of outsourcing
service fees related to acquisition, property-related taxes, urban planning taxes, consumption taxes and other fees).

- 12 -

Assumptions Underlying Forecast of Management Status for Fiscal Period Ending December 31, 2020 (July 1, 2020 to December 31,2020), Fiscal Period Ending June 30, 2021 (January 1, 2021 to June 30, 2021) and Fiscal Period Ending December 31, 2021 (July 1,
2021 to December 31, 2021)
Item

Calculation period

Assumptions
・・・

7th fiscal period :from July 1, 2020 to December 31, 2020 (184 days)
8th fiscal period :from January 1, 2021 to June 30, 2021 (181 days)
9th fiscal period :from July 1, 2021 to December 31, 2021 (184 days)

・The assumption is that CSIF has 23 photovoltaic power generation facilities, etc. that 2 facilities

・

are added to the 21 facilities CSIF had at the end of June 2020 (hereinafter referred to as the“Assets in Possession”). For the details of the 2 facilities to be acquired, please refer to theannouncement to be made today.
These forecasts are based on the assumption that there shall have been be no changes in the・

composition of CSIF’s portfolio (acquisition of new projects or sale of acquired projects, etc.)
until the end of the 9th fiscal period, December 31, 2021.
CSIF’s portfolio may change, however, due to changes in the composition of the portfolio other

Portfolio

than the assumed new acquisition of projects as outlined above.
(Note ) The date of acquisition may be changed in the period from September 2, 2020 to October 31, 2020
due to required time to conduct necessary procedures (including process to change the method ofacquisition) for the acquisition.

・The lease agreements of the solar energy projects that CSIF intends to acquire will become
effective as of the acquisition date. CSIF’s leasing structure for its solar energy projects will becomprised of basic rent and variable rent. Revenue forecasts for the 7th, 8th and 9th fiscal
periods are ¥2,426 million, ¥2,366 million and ¥2,428 million, respectively.
a) Basic rent for each solar energy project that CSIF intends to acquire is calculated asfollows:
Monthly projected energy output (P50) x (100-Y)% x 70% x FIT purchase price
Monthly projected energy output (P50) refers to such figure disclosed in the technical reports(an evaluation report of the system, the capacity, the relevant contracts attached andcontinuity (performance degradation and environmental evaluation)of the solar energy
facility) that the Asset Manager received from E&E Solutions Inc. with respect to each solar
energy project. Monthly projected energy output (P50) *¹x (100-Y)% *²represents the amountafter deduction of fees CSIF pays to the operators and fees regarding management of thelessee. Such amount will vary for each anticipated acquisition.
b) Variable rent for each solar energy project that CSIF intends to acquire is calculated asfollows:
Monthly actual energy output x (100-Y)% x FIT purchase price) – basic rent
Any amount that exceeds the basic rent after multiplying a certain rate of (100-Y)% to themonthly actual energy output for each solar energy project by FIT purchase price will beOperating revenues

captured as a performance-related variable rent. In any case, if the calculation of the variable
rent is a negative number, it shall be deemed to be zero.
(*Note 1) Projected energy output (P50) represents the output that is viewed to be achievable with a 50% probabilityby the third-party providers of the technical reports and other experts.
(*Note 2) Y represents the value for management costs of the lessees and operator remuneration fees. The value ofY will vary for each anticipated acquisition.

・Forecasted figures herein have been based on a projected energy output (P50) and are notguaranteed nor do they reflect the actual energy output, which will vary depending on the level・of solar irradiation.
CSIF has assumed no cancellations of the lease agreements or delinquencies or non-payment of・

rents by tenants.
CSIF has assumed that the current lease agreements will be renewed on equal terms under these
agreements.

- 13 -

・

Of the main operating expenses for the lease of the acquired assets, operating expenses for the・Assets in Possession other than depreciation costs have been accounted for based on past figuresand estimates from subcontractors, etc., taking variables into account. Such costs for the 7th,
8th and 9th fiscal periods are assumed to be ¥623 million, ¥611 million and ¥624 million,
respectively.
Of the expenses for the lease of the Assets in Possession, property-related taxes for the assets to・

be acquired are not accounted as expenses because those tax amount for 2020 are prorated andsettled between CSIF and sellers and capitalized as acquisition cost. The property-related taxes
for the assets held as of June 30, 2020 are estimated at ¥4 million, ¥4 million and ¥4 million for
the fiscal periods ending December 31, 2020, June 30, 2021 and December 31, 2021,
respectively. We assume the amount of property-related taxes to be included in the purchasecost is ¥0 million.
Periodic payment of repair and maintenance costs based on the figures provided in the technical・

reports and the Asset Manager's estimate have been taken into account. However, these figures
are subject to revisions as the actual figures can vary significantly depending on the operating
period and are paid in irregular intervals, in addition to any instances where unexpected repairs
are required.
CSIF expects to pay ¥157 million, ¥159 million and ¥159 million for the 7th fiscal period, the・

8th fiscal period and the 9th fiscal period, respectively, as O&M fees.
CSIF has assumed that it will incur expenses related to the land lease of the Assets in Possession

・in the amount of ¥43 million, ¥43 million and ¥43 million for the fiscal periods ending
December 31, 2020, June 30, 2021 and December 31, 2021 (the 7th, 8th and 9th fiscal periods),
respectively.
CSIF has assumed that it will incur depreciation expenses, including certain ancillary expenses

Operating expensesof ¥915 million, ¥931 million and ¥932 million for the 7th, 8th and 9th fiscal periods,
respectively. These figures are calculated using the straight-line method.
・
Non-operating expenses

Borrowings

CSIF has also assumed interest expenses and other borrowing-related expenses of ¥179 million,¥147 million and ¥163 million for the 7th, 8th and 9th fiscal periods, respectively.

・As of today, the balance of borrowings of CSIF is ¥26,931 million. CSIF assumes that it will・

repay such borrowings in amounts of ¥771 million, ¥763 million and ¥4,772 million at the endof December 2020, June 2021 and December 2021, respectively, under the agreement.
CSIF estimates that the LTV (loan-to-value) ratio will be approximately 55.63%, 55.13% and・

54.56% as of the end of the 7th, 8th and 9th fiscal periods, respectively.
CSIF calculates LTV using the following formula.
LTV = Total interest-bearing debt / Total assets × 100- 14 -

Item

Number of investment units

Distributions per unit
(excluding distributions inexcess of earnings)

Assumptions
・The assumption that CSIF uses is the total number of investment units issued and outstanding・

as of the date of this document, which is 231,190 units. CSIF has assumed that there will be nochange in the number of units issued and outstanding resulting from the issuance of additional
investment units, etc. until the end of the 9th fiscal period ending December 31, 2021.
Distributions per unit (excluding distributions in excess of earnings), distributions in excess of・earnings per unit and distributions per unit (including distributions in excess of earnings) havebeen calculated based on the assumption that the number of units issued and outstanding as ofthe end of each fiscal period will be 231,190 units.
Distributions per unit (excluding distributions in excess of earnings) are calculated based on the・cash distribution policy prescribed in CSIF’s Articles of Incorporation.
Changes in lessees, fluctuations in rental revenues due to changes in lease agreements,・

fluctuations in energy output, unforeseeable repair and maintenance expenses incurred and otherfactors may lead to changes in the amount of distributions per unit (excluding distributions inexcess of earnings).
Distributions in excess of earnings per unit will be generally based on the cash distribution・

policy prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset
management guideline.
CSIF intends to make cash distributions to its unitholders for each fiscal period using cash flow

・

generated by the renewable energy projects (the “Free Cash Flow”*1). The amount available
for distribution shall be calculated by multiplying FCF less any amount payable to debt investors(the “Net Cash Flow,”*2 which shall belong to the equity investors; in the calculation of NCF,
the total amount of NCF remaining after deducting distributions for the preceding fiscal periods
is to be taken into account) by the applicable payout ratio, which will be determined by CSIF at
its discretion for each fiscal period. Further, CSIF intends to make distributions in excess ofearnings for each fiscal period in order to realize this policy.
With respect to distributions per unit (including distributions in excess of earnings) for the fiscal

・

periods ending December 31, 2020, June 30, 2021 and December 31, 2021 (the 7th/8th/9th fiscal
periods), CSIF intends to stably maintain the level of about ¥3,700. And the amount of
distributions in excess of earnings which CSIF plans to pay is ¥648 for the 7th fiscal period
ending December 31, 2020, ¥788 for the 8th fiscal period ending June 30, 2021 and ¥645 forthe 9th fiscal period ending December 31, 2021. This amount, including distributions in excessof earnings, is calculated by multiplying the forecast NCF for the relevant fiscal period (whichis calculated at the beginning of the relevant fiscal period) by a certain ratio, as described above.
The ratio is determined at the beginning of each fiscal period, considering the forecast NCF forthe relevant fiscal period. The ratio used for the 6th fiscal period ending December 31, 2020 is
89.0%.
CSIF may not make cash distributions (refunds of investment) in excess of earnings upon・

consideration of other options, such as repair and capital expenditure, repayment of loans,appropriation to funds for the acquisition of new properties, and the acquisition of treasury
investment units, by comprehensively considering the economic environment, the market
environment relating to the renewable energy power generation projects, the financial positionsof CSIF and other circumstances.
In this regard, cash distributions in excess of earnings (refunds of investment) involve a decrease

Distributions in excess ofearnings per unit

in funds on hand, and thus if capital expenditure beyond the expectations of CSIF is required
due to any sudden events or other causes, there is a possibility of a shortage of funds on hand or
a restriction on the flexible acquisition of properties in terms of funds. In addition, in the caseof a cash distribution (refund of investment) in excess of earnings, the amount of such
distribution will be deducted from the total amount of funds contributed or the contribution
surplus.
(*Note 1) Free Cash Flow (FCF): Rent revenues minus expenses related to rent business and capital expenditures
related to assets. Expenses related to rent business include all cash expenses related to operation, including
payment of asset management fees and administrative service fees, but exclude interest payments related tointerest-bearing debt or other financing-related expenses.
(*Note 2) Net cash flow (NCF): Free Cash Flow minus interest payments related to interest-bearing debt and15

repayments of interest-bearing debt for the relevant fiscal period plus the total amount of NCF remaining after
deducting distributions for the preceding fiscal periods.

・

CSIF has assumed that no revisions that will impact the above projections will be made to laws

・and regulations, tax systems, accounting standards, securities listing regulations and the rules of
The Investment Trusts Association, Japan, among others.
CSIF has assumed that no unforeseeable significant changes will occur in general economic

Otherstrends or conditions in the solar energy facility market and the real estate market.
(3) Risk of Investment
Disclosure is omitted because there have been no significant changes from the description in the latest securities report(submitted on March 30, 2020 including subsequent amendments.).

16

３．Financial Statement（１）Balance Sheet（Unit：thousand yen）
5th Period（December 31, 2019）
AssetsCurrent Assets
Cash and bank deposit
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets
Fixed Assets
Property and equipment
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment ,net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property and equipment
Intangible assets
Leasehold rights
SoftwareTotal intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Total investment and other assets
Total fixed assets
Deferred Assets
Investment corporation bond issuance cost
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating Accounts payable
Accounts payable – operating
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Consumption tax payable
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bondLong-term loan payable
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unit holders’ capital
Deduction from unitholders’ capital
Unitholders’ capital (net value)
Surplus
Unappropriated retained earnings(Accumulated deficit)
17

6th Period(June 30 ,2020)

2,474,056
268,927
157,523
329,815860
3,231,182

2,627,638
477,976
109,917
1,799
3,217,332

1,040,844(63,543)
977,300
42,726,985(3,002,153)
39,724,832
592,249(43,368)
548,8814,469,653
45,720,667

1,041,843(85,025)
956,818
42,736,685(3,880,573)
38,856,111
592,249(55,331)536,917
4,469,653
10,56044,830,061

753,1392,353
755,492

753,1391,960
755,099

316,11912
37,790353,92246,830,082

284,425
15
37,790322,230
45,907,391

8,536
8,536
50,069,801

7,656
7,656
49,132,379

32,9881,512,196
67,471102,033
860
8,317
1,562
1,725,429

29,9581,534,806
78,655
155,410922
203,692301
2,003,746

1,100,000
25,360,810
26,460,810
28,186,239

1,100,000
24,297,106
25,397,106
27,400,853

22,050,175(700,678)
21,349,496

22,050,175(1,010,472)
21,039,702

534,065

691,823

534,065
21,883,561*1 21,883,561
50,069,801

Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

18691,823
21,731,525*1 21,731,525
49,132,379

（２）Statement of Income(Unit: thousand yen)
5th period(from July 1, 2019
to December 31, 2019)
Operating revenues
Rental revenues of renewable energy power generation
facilities, etc.
Total operating revenues
Operating expenses
Rental expenses of renewable energy power generation
facilities, etc.
Asset management fee
Administrative service fees
Director’s compensation
Taxes and duties
Other operating expenses
Total operating expenses
Operating income or loss
Non-operating incomesInterest income
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest on investment corporation bondAmortization of Investment corporation bond issuance
cost
Borrowing-related expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income tax - deferred
Total income taxes
Net income
Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated deficit)- 19 -

6th period(from January 1, 2020
to June 30, 2020)*1 2,088,116*1 2,331,291

2,088,116

2,331,291*1 1,261,805*1 1,362,007

52,213
18,5422,400
772
55,412
1,391,146
696,970

59,407
19,4022,400
101
47,603
1,490,922
840,369

13
13

13
400
413

107,285
1,176
263

112,576
3,894
879

53,389162,115534,868
534,868862
0
862
534,005
59
534,065

30,701
148,053
692,729
692,729924(2)921
691,80716
691,823

（３）【Statements of Changes in Unitholders’ Equity】
5th Fiscal Period (From July 1, 2019 to December 31, 2019)（Unit: thousand yen）
Unitholders’ equity
Unitholders’ capital
Deduction
fromUnitholders’unitholders’ capital(net)capitalUnitholders’capitalBalance as of July 1,
2019

SurplusCapitalsurplus or
loss

Total surplus

Totalunitholders’equityTotal net
assets

22,050,175(567,281)

21,482,893

710,506

710,506

22,193,399

22,193,399

Distribution in excessof earnings-(133,396)(133,396)--(133,396)(133,396)

Dividend of surplus

-

-

-

(710,446)(710,446)(710,446)(710,446)

Net Income

-

-

-

534,005

534,005

534,005

534,005-(133,396)(133,396)(176,441)(176,441)(309,837)(309,837)*1 22,050,175(700,678)

21,349,496

534,065534,065

21,883,561

21,883,561

Changes of items during
the period

Total changes of items
during the period
Balance as of December
31, 2019

6th Fiscal Period (From January 1, 2020 to June 30, 2020)（Unit: thousand yen）
Unitholders’ equity
Unitholders’ capital

Surplus

Total net
assetsUnitholders’capital(net)

Capitalsurplus or
loss

Total surplus

Totalunitholders’equity(700,678)

21,349,496

534,065534,065

21,883,561

21,883,561-(309,794)(309,794)--(309,794)(309,794)

Dividend of surplus

-

-

-

(534,048)(534,048)(534,048)(534,048)

Net Income

-

-

-

691,807691,807691,807691,807-(309,794)(309,794)

157,758

157,758(152,035)(152,035)*1 22,050,175(1,010,472)

21,039,702

691,823

691,823

21,731,525

21,731,525

Unitholders’capitalDeduction
fromunitholders’capital22,050,175

Distribution in excessof earnings

Balance as of January 1,
2020
Changes of items during
the period

Total changes of items
during the period
Balance as of June 30,
2020- 20 -

（４）Statements of Cash Distribution
Fiscal Period under Review(From July 1, 2019
to December 31, 2019)
534,065,162

I Unappropriated retained earnings(accumulated deficit)
II Distributions in excess of retained earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained
earnings(Distributions in excess of retained
earnings)
IV. Retained earnings (deficit) carried forward
Calculation method for cash distributions

Fiscal Period under Review(From January 1, 2020
to June 30, 2020)
Unit: Yen
691,823,858

309,794,600

163,682,520

843,843,500(3,650)534,048,900(2,310)309,794,600

855,403,000(3,700)691,720,480(2,992)
163,682,520(1,340)(708)

16,262

103,378

In accordance with Articles 47,
In accordance with Articles 47,
Paragraph 1 of Canadian Solar Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s Infrastructure Fund, Inc. (“CSIF’) s
Articles of Incorporation, the amount of Articles of Incorporation, the amount ofcash distributions shall be the amount of cash distributions shall be the amount of
profit in excess of an amount equivalent profit in excess of an amount equivalent
to 90% of distributable profits, as to 90% of distributable profits, as
stipulated in Article 67-15 of the Act on stipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation. Special Measures Concerning Taxation.
Based on this policy, CSIF decided to Based on this policy, CSIF decided tomake distributions of ¥534,048,900 make distributions of ¥691,720,480
which is the entire amount equivalent to which is the entire amount equivalent tothe unappropriated retained earnings for the unappropriated retained earnings forthe fiscal period under review of the fiscal period under review of¥534,065,162 excluding fractions of the ¥691,823,858 excluding fractions of the
distribution per unit that are less than ¥1. distribution per unit that are less than ¥1.
CSIF distributes cash in excess of
CSIF distributes cash in excess ofretained earnings every fiscal period retained earnings every fiscal period
based on the cash distribution policy based on the cash distribution policy
prescribed in Article 47, Paragraph 2 of prescribed in Article 47, Paragraph 2 of
CSIF’s Articles of Incorporation. Based CSIF’s Articles of Incorporation. Basedon this policy, CSIF decided to make cash on this policy, CSIF decided to make cash
distributions in excess of earnings (return distributions in excess of earnings (returnof capital categorized as a distribution of of capital categorized as a distribution of
the reduction in capital for Japanese tax the reduction in capital for Japanese tax
purposes) in the amount of ¥309,794,600 purposes) in the amount of ¥163,682,520
which is equivalent to 36.9% of the which is equivalent to 17.9% of theamount of depreciation expenses amount of depreciation expenses
recorded for the fiscal period under recorded for the fiscal period underreview of ¥840,031,795.
review of ¥912,259,006.
Accordingly, the distribution per unit
Accordingly, the distribution per unitis ¥3,650.
is ¥3,700.

(Note)

Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy prescribed in
CSIF’s Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power generation
facilities. The amount available for distribution shall be calculated by multiplying NCF by the payout ratio.
- 21 -

Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order to realize suchpolicy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast Power
Generation (P50) provided in the independent technical report which is used as a basis for calculating rents for renewableenergy power generation facilities and if actual NCF calculated based on actual power generation during the applicablefiscal period exceeds forecast NCF, CSIF’s policy is to set “forecast NCF multiplied by the payout ratio” as the upper limitof the amount of cash distributions for the applicable fiscal period. .
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by the payout
ratio” as the amount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the previous fiscal period of ¥843,843,500 which is equivalent
to 82.0% of forecast NCF amount for the fiscal period under review of ¥1,029,345,000. Of this, ¥309,794,600 which is theamount less of distributions of profit of ¥534,048,900 is distributions in excess of retained earnings.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥855,403,000 which is equivalent
to 94.7% of forecast NCF amount for the fiscal period under review of ¥902,632,000. Of this, ¥163,682,520 which is theamount less of distributions of profit of ¥691,720,480 is distributions in excess of retained earnings.

- 22 -

（５）Statement of Cash Flow
5th period(From July 1, 2019
to December 31, 2019)
Cash flows from operating activities
Income (Loss) before income taxes
Depreciation cost
Investment corporation bond issuance expenses
Interest income
Interest expenses
Decrease (Increase) in operating accounts receivable
Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in consumption taxes payable
Decrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid expenses
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accounts payable - other
Increase (Decrease) in accrued expenses
Other, net
Sub-totalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property and equipment
Purchases of intangible fixed assets
Payment of guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation
bond
Payments for investment corporation bond issuance
expensesDividends paid
Surplus earning distribution paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal
periodCash and cash equivalents at the end of the fiscal period*1- 23 -（unit: thousand yen）
6th period(From January 1, 2020
to June 30, 2020)

534,868
840,031263(13)108,461
157,829(329,815)(41,587)(85,718)(8,695)
6,644(15,532)(11,331)(833)
1,154,572
13(107,769)(870)
1,045,945

692,729912,259879(13)
116,471(209,049)
329,815
195,374
47,606
31,694(3,030)11,18454,026(2,200)2,177,748
13(117,120)(862)
2,059,778(4,396,022)(240,727)(16,769)(4,653,519)(21,259)(21,259)

4,800,000(1,440,151)(1,041,093)

1,100,000-(8,800)-(710,446)(133,396)
3,607,205(368)(534,048)(309,794)(1,884,936)
153,5812,466,624

2,466,256

2,466,256*12,619,838

(6)NOTES ON GOING CONCERN PREMISE
Not applicable.
(7) [SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES]
1.Method of depreciation and(1) Property and equipment

amortization of non-current assets

The straight-line method is adopted. In addition, the useful lives of major property andequipment are as shown below:
Structures .......................................... 22 - 25 years
Machinery and equipment ................. 22 - 25 years
Tools, furniture and fixtures .............. 22 - 25 years(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown below:
Software ............................................ 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.

2. Method of amortization of deferred (1) Investment corporation bond issuance expenses
Amortized by the straight-line method over the life of the bonds.
assets3.Standards for revenue and expense
recognition

Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax, among
other taxes, on the infrastructure assets held, of the tax amount assessed and determined,
the amount corresponding to the calculation period is accounted as rental expenses. In
addition, reimbursement such as fixed assets tax, which is paid to the seller and otherpersons on the acquisition of infrastructure assets and other assets (“the amount equivalent
to the fixed assets taxes and other taxes”) is not recognized as rental expenses but includedin the acquisition cost of the concerned infrastructure assets and other assets. In the fiscal
period under review, the amount equivalent to the fixed assets tax and other taxes includedin the acquisition cost of infrastructure assets and other assets is 504 thousand yen.

4.Scope of funds in statement of cash
flows

5.Method of hedge accounting

6.Other significant matters serving as
the basis for preparation of financial
statements

Funds (cash and cash equivalents) in statement of cash flows consist of cash on hand,demand deposits and short-term investments with a maturity of three months or less at thedate of acquisition that can readily be converted into cash and that are subject toinsignificant risks of changes in value.
(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets the requirements for
special treatment.
(2) Hedging instruments and hedged items:･Hedging instruments……Interest rate swap transaction･Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the CSIF’s Articles ofIncorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, and thus theevaluation of effectiveness is omitted.
Accounting for Consumption tax
Consumption tax and local consumption tax are excluded from the correspondingtransaction amount.

- 24 -

(8) Notes regarding financial statements[NOTES TO BALANCE SHEET]*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
As ofDecember 31, 2019

As ofJune 30, 2020
50,00050,000[NOTES TO STATEMENT OF INCOME]*1 Breakdown of profits and losses from the rental business of renewable energy power
generation facilities, etc.
(Unit: thousand yen)
From July 1, 2019 to
December 31, 2019

From January 1, 2020 toJune 30, 2020

A. Operating revenue from the rental business of renewable energy power generation facilities, etc.
Rental revenue of renewable energy power generation
facilities, etc.
(Basic rent)(Variable rent linked to actual output)(Incidental income)
Total operating revenue from the rental business ofrenewable energy power generation facilities, etc.

1,567,010

1,646,317

520,930

684,879

176

94

2,088,116

2,331,291

B. Operating expenses from the rental business of renewable energy power generation facilities, etc.
Rental expenses of renewable energy power generation
facilities, etc.
146,524

159,491

1,768

98(Taxes and duties)

217,112

223,768(Utilities expenses)--(Insurance expenses)

19,571

22,112(Depreciation expenses)

839,638

911,865(Land rent)

37,19044,670--Total operating expenses from the rental business ofrenewable energy power generation facilities, etc.

1,261,805

1,362,007

C. Profits and losses from the rental business of renewable energy
power generation facilities, etc. （A-B）

826,311969,284(Management entrustment expenses)(Repair and maintenance costs)(Other rental expenses)- 25 -

[NOTES TO STATEMENT OF CHANGES IN NET ASSETS]*1 Total number of authorized investment units and the total number of investment units issued and outstanding
From July 1, 2019 to
December 31, 2019

From January 1, 2020 toJune 30, 2020

Total number of authorized investment
units

10,000,000 unit

10,000,000 unit

Total number of investment units issued
and outstanding

231,190 unit

231,190 unit

[NOTES TO STATEMENT OF CASH FLOWS]*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance sheet(Unit: thousand yen)
From July 1, 2019 to
December 31, 2019

Cash and deposits

2,474,056

2,627,638(7,800)(7,800)2,466,256

2,619,838

Fixed term deposits exceeding 3 months
Cash and cash equivalents

From January 1, 2020 toJune 30, 2020

[NOTES ON LEASE TRANSACTIONS]
Operating lease (as the lessor)
Future minimum lease payments(Unit: thousand yen)
Fiscal period ended

Fiscal period ended

December 31, 2019

June 30, 2020

Within one year

3,329,182

3,320,471

Longer than one year

51,816,828

50,176,820

Total

55,146,011

53,497,291[NOTES ON FINANCIAL INSTRUMENTS]
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or issuing investment
units. The basic policy is to build stable and sound financial operations to maintain and increase earnings in the medium to longterm and grow the size and value of assets.
(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition of managed assets and are exposed
to interest rate fluctuation risk and liquidity risk, among other risks. However, this risk is deducted through the appropriatebalancing of the loan period and the interest rate type, and diversification of lenders, and the appropriate management ofvarious types of indexes, especially the general application of the upper limit of the ratio of interest-bearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices, values arereasonably calculated. Since certain assumptions are used for the calculation of fair values, they may change if different
assumptions are used.

- 26 -

2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of December 31, 2019 and the difference
between them. Financial instruments whose fair values are extremely difficult to estimate are not included in the table.
(Unit: thousand yen)Book value

Fair value

Difference

2,474,056

2,474,056-

268,927

268,927-

Total assets

2,742,983

2,742,983-(3) Current portion of long-term loans
payable1,512,196

1,513,923

1,726(4) Long-term loans payable

25,360,810

25,651,566

290,756(5) Investment corporation bond

1,100,000

1,100,000-

Total liabilities

27,973,006

28,265,489

292,482(6) Derivative transaction

-

-

-

(1) Cash and deposits(2) Operating accounts receivable(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
(3) Current portion of long-term loans payable(4) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every certain
period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, the book value
is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment of interest rate
swap (refer to the “Notes on derivative transactions” below), the fair value is measured by discounting the total sum of theprincipal and interest treated together with the said interest rate swap as one at the interest rate that is applied when the similarloan is obtained and that is reasonably estimated.
(5) Investment Corporation Bond
The fair value of investment corporation bonds is determined based on market prices(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.
The table below shows the book value and fair values of financial instruments as of June 30, 2020, and the difference
between them. Financial instruments whose fair values are extremely difficult to estimate are not included in the table.
(Unit: thousand yen)Book value

Fair value

Difference

2,627,638

2,627,638-

477,976

477,976-

Total assets

3,105,615

3,105,615-(3) Current portion of long-term loans
payable1,534,806

1,536,238

1,432(4) Long-term loans payable

24,297,106

24,526,517

229,410(5) Investment corporation bond

1,100,000

1,086,690(13,310)

Total liabilities

26,931,912

27,149,446

217,533(6) Derivative transaction

-

-

-

(1) Cash and deposits(2) Operating accounts receivable(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions- 27 -

Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
(3) Current portion of long-term loans payable(4) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every certain
period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, the book value
is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment of interest rate
swap (refer to the “Notes on derivative transactions” below), the fair value is measured by discounting the total sum of theprincipal and interest treated together with the said interest rate swap as one at the interest rate that is applied when the similarloan is obtained and that is reasonably estimated.
(6) Investment Corporation Bond
The fair value of investment corporation bonds is determined based on market prices(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.

(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (December 31, 2019)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one
one year,
two years, three years, four years, Longer thanyear
within two within three within four within five
five years
years
years
years
years
2,474,056

-

-

-

-

-

(2) Operating accounts receivable

268,927

-

-

-

-

-

Total

2,742,983

-

-

-

-

-

(1) Cash and deposits

Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2020)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one
one year,
two years, three years, four years, Longer thanyear
within two within three within four within five
five years
years
years
years
years
2,627,638

-

-

-

-

-

(2) Operating accounts receivable

477,976

-

-

-

-

-

Total

3,105,615

-

-

-

-

-

(1) Cash and deposits(Note 3) Scheduled redemption amount of loans payables after the closing date (December 31, 2019)

Within one
year(3) Current portion of long-termloans payable(Unit: thousand yen)
Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four within five
five years
years
years
years
years

1,512,196

-

-

-

-

-

(4) Long-term loans payable-

5,836,435

1,860,238

1,292,889

1,254,936

15,116,310(5) Investment corporation bond

-

-

-

-

1,100,000-

1,512,196

5,836,435

1,860,238

1,292,889

2,354,936

15,116,310

Total

Scheduled redemption amount of loans payables after the closing date (June 30, 2020)

Within one
year(3) Current portion of long-termloans payable

1,534,806(Unit: thousand yen)
Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four within five
five years
years
years
years
years
- 28 -----

(4) Long-term loans payable-

5,986,293

1,286,533

1,285,273

1,242,792

14,496,212(5) Investment corporation bond

-

-

-

-

1,100,000-

1,534,806

5,986,293

1,286,533

1,285,273

2,342,792

14,496,212

Total[NOTES ON SECURITIES]
Prior fiscal period (as of December 31, 2019)
Not applicable.
Current fiscal period (as of June 30, 2020)
Not applicable.
[NOTES ON DERIVATIVE TRANSACTIONS]
1. Those to which hedge accounting is not applied
Prior fiscal period (as of December 31, 2019) and current fiscal period (as of June 30, 2020)
Not applicable.
2. Those to which hedge accounting is applied
Prior fiscal period (as of December 31, 2019)(Unit: thousand yen)
Method ofhedge
accounting
Specialtreatment ofinterest rate
swap

Type of derivativetransactions and othermatters
Interest rate swap
transaction
Fixed
payment/variable
receipt

Major
items
hedgedLongtermloanspayableFair value

Method ofcalculation ofsaid market
value(Note)-

Contract amount and other amounts
Longer than one
year

21,411,430

20,187,606(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of long-term loans payable
and the long-term loans payable to be hedged as one, and thus their fair value is presented together with the fair value of (Note 1) (3) Current
portion of long-term loans payable and (4) Long-term loans payable in “Notes on financial instruments 2.Matters relating to fair values offinancial instruments, among other matters” .

Current fiscal period (as of June 30, 2020)(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions and othermatters

Major
items
hedgedSpecialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

LongtermloanspayableFair value

Method ofcalculation ofsaid market
value(Note)-

Contract amount and other amounts
Longer than one
year

20,811,569

19,568,757(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of long-term loans payable
and the long-term loans payable to be hedged as one, and thus their fair value is presented together with the fair value of (Note 1) (4) Current
portion of long-term loans payable and (5) Long-term loans payable in “Notes on financial instruments 2.Matters relating to fair values offinancial instruments, among other matters”[NOTES ON RETIREMENT BENEFITS]
Prior fiscal period (as of December 31, 2019)
Not applicable.
- 29 -

Current fiscal period (as of June 30, 2020)
Not applicable.
[NOTES ON TAX EFFECT ACCOUNTING]
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Unit: thousand yen)
Fiscal period ended
December 31, 2019

Fiscal period ended
June 30, 2020

Accrued business tax not deductible from taxable
income1215

Total deferred tax assets

1215

Net amount of deferred tax assets

1215

2. Breakdown of each major item that causes a significant difference between the effective statutory tax rate and the rate of
the burden of corporate tax and other taxes after the application of tax effect accounting
Fiscal period ended
December 31, 2019

Fiscal period ended
June 30, 2020

31.51%

31.46%(31.46)%(31.41)%Others

0.11%

0.09%

Rate of burden of corporate tax and other taxes after
the application of tax effect accounting

0.16%

0.14%

Effective statutory tax rate
(Adjustment)
Dividends paid deductible for tax purpose[NOTES ON SHARE OF PROFIT (LOSS) OF ENTITIES ACCOUNTED FOR USING EQUITY METHOD, ETC.]
Prior fiscal period (as of December 31, 2019)
Not applicable.
Current fiscal period (as of June 30, 2020)
Not applicable.
[NOTES ON RELATED PARTY TRANSACTIONS]
Prior fiscal period (from July 1, 2019 to December 31, 2019)
Not applicable.
Current fiscal period (from January 1, 2020 to June 30, 2020)
Not applicable.
[NOTES ON ASSET RETIREMENT OBLIGATIONS]
Prior fiscal period (from July 1, 2019 to December 31, 2019)
Not applicable.
Current fiscal period (from January 1, 2020 to June 30, 2020)
Not applicable.

- 30 -

[NOTES ON INVESTMENT AND RENTAL PROPERTY]CSIF has renewable energy power generation facilities, etc. The book value, change during the period and fair value at theend of the period are as shown below.
(Unit: thousand yen)
Fiscal period ended
December 31, 2019

Fiscal period ended
June 30, 2020

Book value (Note 2)
Beginning balance

42,676,695

46,473,806

Change during the period(Note 3)

3,797,111(901,166)

Ending balance

46,473,806

45,572,640

Fair value at the end of the period(Note 4)51,498,500

49,588,000(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities, and thus with respect to thebook value and the fair value, the amount of the renewable energy power generation facilities and real estate are stated together as one.
(Note 2) The book value is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period ended December 31, 2019 primarily consisted of the increase due to acquisition of one photovoltaic power generation
facility (4,629,532 thousand yen), and the decrease due to depreciation expenses (839,638 thousand yen). And the change during the period ended
June 30, 2020 primarily consisted of the increase due to capital expenditure for one photovoltaic power generation facility (10,699 thousand yen),and the decrease due to depreciation expenses (911,865 thousand yen).
(Note 4) The fair value is the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's Articles of Incorporation on the basis of
the appraised value in the range stated in the valuation report with the date of the value opinion on December 31, 2019 and June 30, 2020, which was
obtained from PricewaterhouseCoopers Sustainability LLC (for S-01 to S-18) or Ernst & Young Transaction Advisory Services Co., Ltd. (for S-19
to S-21).

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal period ended December
31, 2019 (the 5th period) and the fiscal period ended June 30, 2020 (the 6th period) are as stated in the “Notes to statement ofincome” above.
[NOTES ON SEGMENT INFORMATION]
1.Segment information
Since CSIF has a single segment of the rental business of infrastructure assets, the segment information is omitted.
2.Related Information
Prior fiscal period (from July 1, 2019 to December 31, 2019)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers exceeds 90% of
the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of the operating revenue
on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of the amount ofproperty and equipment on the balance sheet.

- 31 -

(3) Information on major customers（unit: thousand yen）
Name of customer

Total net revenue

Name of related segment

2,061,357

Tida Power 01 G.K.

CLEAN ENERGIES WORLD K.K.

26,582

Renewable energy power generation
facilities, etc. rental business
Renewable energy power generation
facilities, etc. rental businessCurrent fiscal period (from January 1, 2020 to June 30, 2020)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers exceeds 90%of the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of the operating
revenue on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of the amountof property and equipment on the balance sheet.
(3) Information on major customers（unit: thousand yen）
Name of customer

Total net revenue

Tida Power 01 G.K.

2,331,196

Name of related segment
Renewable energy power generation
facilities, etc. rental business[NOTES ON PER UNIT INFORMATION]
Prior fiscal period
From July 1, 2019
December 31, 2019
Net assets per unit
Net income (Net loss) per unit

Current fiscal period
From January 1, 2020
June 30, 2020

94,656 yen
2,309 yen

93,998 yen
2,992 yen

(Note 1) Net income (Net loss) per unit is calculated by dividing net income (net loss) by the average number of investment units during the period. In theprevious fiscal period, a loss was posted and there were no dilutive investment units, and thus diluted loss per unit is not stated. With respect todiluted profit per unit for the period under review, there are no dilutive investment units, and thus the statement is omitted.
(Note 2) The basis of calculation of net income (net loss) per unit is as follows.

Prior fiscal period
From July 1, 2019
December 31, 2019
Net income (Net loss) (Thousand yen)Amount not attributable to common unit holders(Thousand yen)
Net income (Net loss) attributable to Common unit
holders (Thousand yen)
Average number of investment units during the period(Units)- 32 -

Current fiscal period
From January 1, 2020
June 30, 2020

534,005

691,807--534,005

691,807

231,190

231,190

[NOTES ON FACTS ARISING AFTER THE SETTLEMENT OF ACCOUNTS]
Acquisition of assets
CSIF will acquire the assets below on September 1, 2020, in accordance with the basic policy of asset management defined in theterms and conditions of CSIF, upon obtaining the approval of CSIF’s board of directors’ meeting on August 14, 2020. The financefor this acquisition is not yet determined.
Asset no.
(Note 1)Name of project(Note 2)Type of asset

Location(Note 3)Acquisition price (JPY
million) (Note 4)

S-22

CS Ishikari
Shinshinotsu-muraPower Plant

Trust beneficiaryinterest

Ishikari-gun,
Hokkaido

680

CS Hokkaido
Ishikari G.K.

S-23

CS Osaki-shi
Kejonuma Power
Plant

Trust beneficiaryinterest

Osaki-shi,
Miyagi208

CS Miyagi
Kejonuma G.K.

Total

Seller888(Note 1) The date of acquisition may be changed in the period from September 2, 2020 to October 31, 2020 due to required time to conduct necessary
procedures (including process to change the method of acquisition) for the acquisition.
(Note 2) Asset number is assigned to the projects to be acquired, based on the classification of the renewable energy. “S” denotes a solar energy
project.
(Note 3) “CS” is the abbreviation for Canadian Solar.
(Note 4) Based on the land or a parcel of the land upon which the solar energy facility is located, as described in the property registry. The address is
described up to the city or district level.
(Note 5) Anticipated acquisition price is as described in the purchase agreements (excluding acquisition expenses such as the payment of outsourcing
service fees related to acquisition, property-related taxes, urban planning taxes, consumption taxes and other fees).

(9) Change in the total number of investment units issued and outstanding
Change in the total number of investment units issued and outstanding and the total amount of unitholders' capital is as shown
below since the establishment of the CSIF.

Date

Event

Total number of investment units
issued and outstanding (units)
ChangeBalance

Total amount of unitholders'
capital (Note 1) (million yen)
ChangeRemarks

Balance

May 18, 2017

Establishment upon
private placement

1,500

1,500

150

150

(Note 2)October 27, 2017

Capital increase by
public offering

177,800

179,300

16,891

17,041(Note 3)

November 28, 2017

Capital increase by
third-party
allotment

2,890

182,190274

17,315(Note 4)September 5, 2018

Capital increase by
public offering

46,667

228,857

4,509

21,824(Note 5)

Cash distribution inexcess of earnings
September 14, 2018(refund ofinvestment)-

228,857(147)

21,677(Note 6)

October 4, 2018

Capital increase by
third-party
allotment

2,333

231,190

225

21,902(Note 7)

March 14, 2019

Cash distribution inexcess of earnings(refund of-

231,190(420)

21,482(Note 8)- 33 -

investment)
Cash distribution inexcess of earnings
September 17, 2019(refund of-

231,190(133)

21,349(Note 9)-231,190(309)

21,039(Note 10)

investment)
Cash distribution inexcess of earnings(refund ofinvestment)

March 17, 2020

(Note 1) The amount of deduction of total amount of unitholders’ capital is deducted.
(Note 2) In the establishment of the CSIF, the investment units were issued at an issue price of ¥100,000 per unit. The party who applied for subscriptionof investment units upon the establishment is Canadian Solar Projects K.K.
(Note 3) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at an issue price of¥100,000 (issue value of ¥95,000) per unit.
(Note 4) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue value of ¥95,000 per unit for the purpose of
appropriation to a part of the funds for acquisition of specified assets or part of repayment of borrowings.
(Note 5) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at an issue price of¥102,180 (issue value of ¥96,625) per unit.
(Note 6) CSIF decided, at a meeting of its Board of Directors held on August 14, 2018, to pay a cash distribution in excess of earnings (refund of investment)in an amount of ¥808 per unit for the second fiscal period (ended June 30, 2018), and began to pay it from September 14, 2018.
(Note 7) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue price of ¥96,625 per unit for the purpose of
appropriation to a part of the funds for acquisition of specified assets or a part of the funds for repayment of borrowings.
(Note 8) CSIF decided, at a meeting of its Board of Directors held on February 15, 2019, to pay a cash distribution in excess of earnings (refund ofinvestment) in an amount of ¥1,817 per unit for the third fiscal period (ended December 31, 2018), and began to pay it from March 14, 2019.
(Note 9) CSIF decided, at a meeting of its Board of Directors held on August 13, 2019, to pay a cash distribution in excess of earnings (refund of investment)in an amount of ¥577 per unit for the fourth fiscal period (ended June 30, 2019), and began to pay it from September 14, 2019.
(Note 10) CSIF decided, at a meeting of its Board of Directors held on February 13, 2020, to pay a cash distribution in excess of earnings (refund ofinvestment) in an amount of ¥1,340 per unit for the fourth fiscal period (ended December 31, 2019), and began to pay it from March 17, 2020.

3. Reference(1) Conditions of Investment(as of June 30, 2020)
Total Asset-UnderType of asset

Region (Note 1)

Management (AUM)(‘000yen) (Note 2)
998,200

2.0

Kanto

2,349,633

4.8

Tokai

5,644,544

11.5

Chugoku/Shikoku

10,030,169

20.4

Kyushu21,327,299

43.4

40,349,847

82.1

Hokkaido/Tohoku

48,9700.1

Kanto

648,591

1.3

Tokai

63,3090.1

Chugoku/Shikoku

523,905

1.1

3,184,875

6.5

4,469,653

9.1

Hokkaido/Tohoku

Solar energy facility

SubtotalLand% of total AUM(Note 3)KyushuSubtotal- 34 -

Hokkaido/Tohoku

17,9240.0

Kanto

59,1970.1

Tokai282,151

0.6

3,415

0.0

390,4500.8

753,139

1.5

Hokkaido/Tohoku

1,065,095

2.2

Kanto

3,057,423

6.2

Tokai

5,990,005

12.2

Chugoku/Shikoku

10,557,490

21.5

Kyushu24,902,625

50.7

45,572,640

92.8

Solar energy facility etc. total

45,572,640

92.8

Saving/other assets

3,559,738

7.2

Asset total (2)49,132,379

100.0Land lease

Chugoku/Shikoku
KyushuSubtotal

Solar energy facility etc.

Subtotal(Unit: thousand yen)

% of total AUM(Note 3)

Total liabilities

27,400,853

55.8

Total net assets

21,731,525

44.2(Note 1) “Hokkaido and Tohoku” denote Hokkaido, Aomori-ken, Iwate-ken, Akita-ken, Miyagi-ken, Fukushima-ken and Yamagata-ken. “Kanto” denotes
Ibaraki-ken, Tochigi-ken, Gunma-ken, Tokyo-to, Kanagawa-ken, Saitama-ken, Chiba-ken Yamanashi-ken, Nagano-ken and Niigata-ken. “Tokai”
denotes Shizuoka-ken, Aichi-ken, Gifu-ken, Mie-ken, Toyama-ken, Ishikawa-ken and Fukui-ken. “Chugoku and Shikoku” denote Okayama-ken,
Hiroshima-ken, Yamaguchi-ken, Tottori-ken, Shimane-ken, Kagawa-ken, Kochi-ken, Tokushima-ken and Ehime-ken. “Kyushu” denotes
Fukuoka-ken, Oita-ken, Miyazaki-ken, Kagoshima-ken, Kumamoto-ken, Nagasaki-ken, Saga-ken and Okinawa-ken.
(Note 2) The amount posted on the balance sheet as of June 30, 2020.
(Note 3) The figures have been rounded to the first decimal place.

(2) Investment Assets①Investment Securities
Not Applicable②Investment Properties
Not Applicable③Major Investment Assets
a. summary information for the CSIF
The following table provides summary information for the CSIF current 21 solar energy projects as of June 30, 2020.

Asset #

Category

Project name

Site Area(m2)

Location- 35 -

PPA purchaseprice(yen/kwh)

Certification
Date

FIT term end

S-01

Solar Plant
etc.

CS Shibushi-shi
Power Plant

Shibushi-shi,
Kagoshima

19,86140

February 26,
2013

September
16, 2034

S-02

Solar Plant
etc.

CS Isa-shi
Power Plant

Isa-shi, Kagoshima

22,22340

February 26,
2013

June 8, 2035

Solar Plant

CS Kasama-shi

etc.

Power Plant

S-04

Solar Plant
etc.

CS Isa-shi Daini Power Plant

Isa-shi, Kagoshima

31,81836

October 2,
2013

June 28, 2035

S-05

Solar Plant
etc.

CS Yusui-cho
Power Plant

Aira-gun,Kagoshima

25,27436

March 14,2014

August 20,
2035

S-06

Solar Plant
etc.

CS Isa-shi Daisan Power Plant

Isa-shi, Kagoshima

40,73640

February 26,
2013

September
15, 2035

S-07

Solar Plant
etc.

CS Kasama-shi
Dai-ni Power
Plant

Kasama-shi, Ibaraki

53,27540

January 25,
2013

September23, 2035

S-08

Solar Plant
etc.

CS Hiji-machi
Power Plant

Hayami-gun, Oita

30,24636

July 16, 2013

October 12,
2035

S-09

Solar Plant
etc.

CS Ashikitamachi Power
Plant

Ashikita-gun,
Kumamoto

45,74040

February 26,
2013

December 10,
2035

December 24,
2035 (East)
January 28,2036 (West)

S-03

S-10

Solar Plant
etc.

CS
Minamishimabar
a-shi Power
Plant (East) / CS
Minamishimabar

Kasama-shi, Ibaraki

42,666(Note 1)40

January 25,
2013

Minamishimabarashi, Nagasaki

56,06640

February 26,
2013 (East)
February 26,
2013 (West)a-shi Power
Plant (West)

June 25, 2035

S-11

Solar Plant
etc.

CS Minanomachi Power
Plant

Chichibu-gun,
Saitama

44,90432

December 11,
2014

December 06,
2036

S-12

Solar Plant
etc.

CS Kannamicho Power Plant

Tagata-gun,Shizuoka

41,33936

March 31,2014

March 02,
2037

S-13

Solar Plant
etc.

CS Mashikimachi Power
Plant

Kamimashiki-gun,
Kumamoto

638,552（Note2）36

October 24,
2013

June 01, 2037

S-14

Solar Plant
etc.

CS Koriyamashi Power Plan

Koriyama-shi,
Fukushima

30,376（Note1）32

February 27,
2015

September
15, 2036

S-15

Solar Plant
etc.

CS Tsuyama-shi
Power Plant

Tsuyama-shi,
Okayama

31,05932

September
26, 2014

June 29, 2037

S-16

Solar Plant
etc.

CS Ena-shi
Power Plant

Aza Ochise,
Kusumi, Osashimacho, Ena-shi, Gifu

37,37332

February 24,
2015

September
12, 2037

February 22,2013 (A)August 9,

S-17

Solar Plant
etc.

CS Daisen-choPower Plant (A)and (B)

Aza Magoese,
Toyofusa, Daisencho, Saihaku-gun,Tottori (A)Aza Kamikawara,
Toyofusa, Daisencho, Saihaku-gun,Tottori (B)- 36 -

452,760（Note 3）40

February 28,
2013 (B)

2037

S-18

Solar Plant
etc.

S-19

Solar Plant
etc.

CS Takayamashi Power Plant

Shingumachi,
Takayama-shi, Gifu

CS Misatomachi Power

Misato-machi,
Kodama-gun,

Plant

Saitama

16,278(Note 1）32

January 30,
2015

October 09,
2037

25,31532

January 6,
2015

March 26,
2037

S-20

Solar Plant
etc.

CS Marumorimachi Power
Plant

Marumori-machi,
Igu-gun, Miyagi

65,306(Note 4)36

February 28,
2014

July 12, 2038

S-21

Solar Plant
etc.

CS Izu-shi
Power Plant

Ono Aza Okubo,
Izu-shi, Shizuoka

337,160

36

March 31,2014

November29, 2038(Note 1) Site area for the portion of the solar energy plants land under ownership is shown and excludes the portion of the land where we hold aneasement.
(Note 2) Site area for the portion of the solar energy plants and high-voltage land under ownership is shown and excludes the portion of the land
where we hold an easement.
(Note 3) Site area for the portion of the solar energy plants and high-voltage land under superficies is shown and excludes the portionof the land where we hold an easement.
(Note 4) Site area for the portion of the solar energy plants and high-voltage land and access roads under superficies is shown and excludes the
portion of the land where we hold an easement.

- 37 -

Asset #Project name

Certified
Operator

AcquisitionPrice(million yen)

PPA company(Note 1)

S-01

S-02

S-03

S-04

S-05

S-06

S-07

S-08

S-09

S-10

S-11

S-12

(Note 2)

CS Shibushishi Power Plant

Tida Power
01 G.K

KyushuElectric Power
Co., Inc540

CS Isa-shi
Power Plant

Tida Power01
G.K.

KyushuElectric Power
Co., Inc

372

CS Kasama-shi
Power Plant

Tida Power01
G.K.

TEPCO
Energy Partner,
Incorporated

907

Tida Power01
G.K.

KyushuElectric Power
Co., Inc

778

CS Isa-shi Daini Power Plant

CS Yusui-cho
Power Plant

Tida
Power01
G.K.

yen) (Note
4)

525

501

345

339
21
754

995

846
241
678

717

704
38

KyushuElectric Power
Co., Inc

582
670

614

607
32

Co., Inc

Tida
Power01
G.K..

TEPCO
EnergyPartner,
Incorporated

850

CS Hiji-machi
Power Plant

Tida
Power01
G.K.

KyushuElectric
Power Co.,
Inc

1,029

CS Ashikitamachi Power
Plant

Tida
Power01
G.K..

KyushuElectric
Power Co.,IncCS
Minamishimabara-shi Power
Plant (East) /CS
Minamishimabara-shi Power
Plant (West)facility)(lower：land)

323

G.K..

CS Kasama-shi
Dai-ni Power
Plant

Fiscalperiod end
book value(million142

KyushuElectric Powersan Power Plant

Appraisal value ofsolar plants(million yen)(Note 3)(upper：solar energy

383

Tida
Power01

CS Isa-shi Dai-

Fiscal period
end valuation(million yen)

820
949

881

862
60
807

849

765
41
908

947

929
38
889

989

929

896
40
1,603

Tida Power
01 G.K.

KyushuElectric Power
Co., Inc

1,733

CS Minanomachi Power
Plant

Tida
Power01
G.K.

TEPCO Energy
Partner,
Incorporated

1,018

CS Kannami-

Tida

TEPCO Energy

514- 38 -

1,684

1,573
81

821
1,087

975
266

546

502

471

S-13

S-14

S-15

S-16

S-17

S-18

S-19

S-20

S-21

cho Power
Plant

Power01
G.K..

Partner,
Incorporated

CS Mashikimachi Power
Plan

Tida
Power01
G.K.

KyushuElectric Power
Co., Inc.

20,084

CS Koriyamashi Power Plan

Tida
Power01
G.K..

TohokuElectric Power
Co., Inc.

246

CS Tsuyamashi Power Plan

Tida
Power01
G.K..

The Chugoku
Electric Power
Co., Inc.

746

Tida Power01
G.K..

The Chubu
Electric Power
Co., Inc.

757

Tida
Power01
G.K..

The Chugoku
Electric Power
Co., Inc.

10,447

CS Takayama- Tida Power01
shi Power Plant
G.K.

The Chubu
Electric Power
Co., Inc.

326

CS Misatomachi Power
Plant

Univergy
G.K.
(Note 5)TEPCO Energy
Partner,
Incorporated

470

CS Marumori-

CLEAN
ENERGIESSOLUTIONS
K.K. (Note 5)

CS Ena-shi
Power Plant
CS Daisen-choPower Plant(A) and (B)machi PowerPlant
CS Izu-shi
Power Plant

01

LOHAS
CLEAN
ENERGIESWORLD K.K.

43
17,601
21,071

18,486
3,470
195

247

238
51
618

755

748
137
770

807

673
37
10,06910,442

9,808
373
266

327

318
61
341

462

470
121

Tohoku807

Electric
Power Co.,
Inc.

850

825

826
17

TEPCO Power
Grid,
Incorporated

4,283
4,569

4,528

48,85049,5884,526

245
44,027

Total

46,473
5,560(Note 1) Acquisition price is based on acquisition price as described in the purchase agreements (excluding acquisition expenses related to the payment ofoutsourcing service fees, property-related taxes, taxes on depreciable assets, urban planning taxes, consumption taxes and other fees).
(Note 2) For S-01 to S-18, the fiscal period end valuation is the median amount that the Investment Corporation calculated in accordance with Article 41,
paragraph 1 of the CSIF's Articles of Incorporation based on the range of valuation provided to us by PricewaterhouseCoopers Sustainability LLC
and, for S-19 to S-21, the fiscal period end valuation is based on the median amount provided to us by Ernst & Young Transaction Advisory
Services Co., Ltd. in its project valuation report.
(Note 3) On the upper row of the appraisal value of solar plants, an assumed appraisal value of solar energy projects that is obtained by deducting the realestate appraisal value calculated by Daiwa Real Estate Appraisal Co., Ltd. from the appraised value at the end of the period in (Note 2) above isstated, and on the lower row, an amount stated in the real estate appraisal report prepared by Daiwa Real Estate Appraisal Co., Ltd. is stated. Realestate includes its superficies right.
(Note 4) Fiscal period end book value is the book value of solar energy.
(Note 5) Former certified operator, LOHAS CLEAN ENERGIES WORLD K.K. for CS Izu-shi Power Plant, was merged into Tida Powe01 G.K. as ofJanuary 15, 2020.

- 39 -

b. Revenue and expenses of individual renewable energy power generation facilities
Sixth fiscal period (from January 1, 2020 to June 30, 2020)(Unit: thousand yen)
Asset number

S-01

S-02

S-03

S-04

S-05

CS Isa-shi
CS Isa-shi CS Kasama-shi Dai-niPower Plant Power Plant Power Plant

CS Yusuicho Power
Plant

Total portfolio

CS Shibushishi PowerPlant

1,646,317

18,632

14,24035,14729,36026,691

684,879

3,336

3,522

14,795

5,875

3,444

94

-

-

94

-

-

2,331,291

21,96817,76350,03835,23530,135

223,768

1,917

1,452

3,283

3,232

2,805

223,768

1,917

1,452

3,283

3,232

2,805

-

-

-

-

-

-

226,372

2,273

2,617

3,322

4,653

4,508

159,491

2,014

1,610

2,887

2,659

2,869

(Repair and maintenance costs)

98

-

-

-

-

-

(Utilities expenses)

-

-

-

-

-

-

(Insurance expenses)

22,112

258

209

434

402

375

(Land rent )44,670

-

797

-

1,590

1,263

-

-

-

-

-

-

Depreciation cost

911,865

9,472

7,837

14,462

16,457

14,263(Structures)

21,481

457

256

324

306

598

(Machinery and equipment)

878,420

8,973

7,563

14,104

16,10913,429(Tools, furniture and fixtures)

11,963

41

17

33

41

235

1,362,007

13,663

11,90721,06824,343

21,577969,284

8,304

5,855

28,97010,892

8,558

Project nameRental revenue of renewable energy
power generation facilities, etc.
Basic rent
Variable rent linked to actual
output (Note)
Incidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Other rental cost)

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)
Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)(Note) As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc., in the case of CS Shibushi-shi Power
Plant, CS Isa-shi Power Plant, CS Isa-shi Dai-ni Power Plant and CS Yusui-cho Power Plant, from which Kyushu Electric Power Co., Inc. purchases- 40 -

electricity, CSIF determined variable rent linked to actual output for December 2019 based on output measured by the monitoring system. As of thedate of this report, CSIF has received notification of purchased electricity for December 2019 and, therefore, adjusted variable rent linked to actual
output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity stated in the notification ofpurchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

- 41 -

(Unit: thousand yen)
Asset number

S-06

S-07

S-08

S-09

S-10
CS

Project nameMinamishimabarashi Power Plant
CS Hiji-machi CS Ashikita-machi(East) / CS
Power Plant
Power Plant
Minamishimabarashi Power Plant(West)CS Kasama-shi
CS Isa-shi Dai- Dai-ni Powersan Power Plant Plant

Rental revenue of renewable energy
power generation facilities, etc.
35,51434,72037,75735,571

63,166

7,953

14,507

10,964

8,257

13,840

-

-

-

-

-

43,46749,227

48,721

43,82977,006

3,876

3,689

4,427

4,167

7,296

3,876

3,689

4,427

4,167

7,296

-

-

-

-

-

6,385

5,695

5,524

6,154

10,118

3,907

2,881

3,391

3,964

5,127

(Repair and maintenance costs)

-

-

-

-

-

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

441

417

530

509

731

2,036

2,395

1,602

1,681

4,260

-

-

-

-

-

Depreciation cost

19,861

17,60422,07020,21635,224(Structures)

290

247

835

1,441

739

19,52017,314

21,12018,523

34,235

51

42

114

252

248

30,123

26,98832,021

30,53952,63913,343

22,23816,70013,29024,367

Basic rent
Variable rent linked to actual
output (Note)
Incidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Land rent )(Other rental cost)(Machinery and equipment)(Tools, furniture and fixtures)
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)
Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)(Note) As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc., in the case of CS Isa-shi Dai-san Power- 42 -

Plant, CS Hiji-machi Power Plant, CS Ashikita-machi Power Plant and CS Minamishimabara-shi Power Plant, from which Kyushu Electric Power Co.,
Inc. purchases electricity, CSIF determined variable rent linked to actual output for December 2019 based on output measured by the monitoring
system. As of the date of this report, CSIF has received notification of purchased electricity for December 2019 and, therefore, adjusted variable rent
linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity stated in the
notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

- 43 -

(Unit: thousand yen)
Asset number

Project name

S-11

S-12

S-13

S-14

S-15

CS Minano-machi CS Kannami-cho CS Mashiki-machi CS Koriyama-shi CS Tsuyama-shi
Power Plant

Power Plant

Power Plan

Power Plan

Power Plan

Rental revenue of renewable energy
power generation facilities, etc.
35,34019,545661,218

8,044

24,321

10,9507,872

167,511

4,396

12,548

-

-

-

-

-

46,291

27,418

828,729

12,44136,869

3,816

2,069

83,464

1,171

3,469

3,816

2,069

83,464

1,171

3,469

-

-

-

-

-

3,700

3,641

72,071

965

3,482

3,195

1,743

62,244837

3,206(Repair and maintenance costs)

-

-

98

-

-

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

504

243

9,662

128

275

(Land rent )

-

1,654

65

-

-

(Other rental cost)

-

-

-

-

-

Depreciation cost

16,132

9,662

344,512

4,191

12,914(Structures)

766

380

3,531

327

376

15,3669,226

333,078

3,864

12,232(Tools, furniture and fixtures)

-

55

7,902

-

304

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

23,64915,373500,048

6,328

19,866

22,642

12,045

328,680

6,113

17,003

Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Machinery and equipment)

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)(Note) As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc., in the case of CS Mashiki-machi Power
Plant, from which Kyushu Electric Power Co., Inc. purchases electricity, CSIF determined variable rent linked to actual output for December 2019
based on output measured by the monitoring system. As of the date of this report, CSIF has received notification of purchased electricity for December
2019 and, therefore, adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is basedon the purchased electricity stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current
fiscal period is insignificant.

- 44 -

(Unit: thousand yen)
Asset number

Project name

S-16

S-17

S-18

CS Daisen-cho

CS Ena-shi
Power Plant

CS Takayama-

S-19

S-20

CS Misato-

CS Marumori-Power Plant (A)and (B)shi Power Plant

machi Power
Plant

machi Power
Plant

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

26,266326,253

11,01915,30032,391

Variable rent linked to actual output

14,224

268,083

4,989

7,717

15,151

-

-

-

-

-

40,490594,336

16,00923,01747,542

3,776

51,761

1,762

2,646

5,430

3,776

51,761

1,762

2,646

5,430

-

-

-

-

-

4,288

54,604

1,399

1,506

8,059

2,772

36,036

1,256

1,315

2,797

(Repair and maintenance costs)

-

-

-

-

-

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

314

5,812

142

190

526

1,202

12,755

-

-

4,735

-

-

-

-

-

Depreciation cost

14,510214,567

5,496

7,594

17,036(Structures)

589

4,905

344

176

503

13,823208,879

5,139

7,345

16,297

97

782

12

72

234

Total operating revenue from the rental
business of renewable energy power
generation facilities, etc. (subtotal B)

22,576

320,933

8,657

11,74730,526

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

17,914273,403

7,351

11,27017,016

Incidental income
Total operating revenue from the rental
business of renewable energy power
generation facilities, etc. (subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Land rent )(Other rental cost)(Machinery and equipment)(Tools, furniture and fixtures)- 45 -

(Unit: thousand yen)
Asset number

Project name

S-21
CS Izu-shi
Power Plant

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

155,813

Variable rent linked to actual output

84,936

Incidental income
Total operating revenue from the rental
business of renewable energy power
generation facilities, etc. (subtotal A)

240,749

Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)

28,252
28,252
21,398
12,770(Repair and maintenance costs)-(Utilities expenses)-(Insurance expenses)-(Land rent )(Other rental cost)

8,628
-

Depreciation cost

87,776(Structures)

4,082(Machinery and equipment)

82,271(Tools, furniture and fixtures)

1,421

Total operating revenue from the rental
business of renewable energy power
generation facilities, etc. (subtotal B)

137,427

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

103,322- 46 -

(3) Plan for capital expenditure
The following table shows projected major capital expenditures for renewable energy power generation facilities, etc. owned by
CSIF after January 2020. Some portion of the amount are to be treated as expenses for accounting purpose.
Projected amount (million yen)
Name ofinfrastructure
assets, etc.

Location

PurposeCS Tsuyama-shi
Power Plant

Tsuyama-shi
OkayamaDisaster recovery
construction

From April 2020
To July 2020

CS Marumorimachi Power
Plant

Marumorimachi Miyagi

Access roadrestoration
work/repair workinside the power
plant

CS Mashikimachi Power
Plant

Mashiki-machi
Kumamoto

Building works forcurtailment control

Amount paid
during the
fiscal period
under review

Amount paidby prior period

21

6

6

From July 2020
To November 2020

18

-

-

From February 2020
To September 2020

32

9

9

Projected period

Totalamount(4) Capital expenditure during the fiscal period
The following table shows capital expenditures for renewable energy power generation facilities, etc. owned by CSIF during the
fiscal period under review.
Name of infrastructure assets, etc.
(Location)
CS Mashiki-machi Power Plant(Kami mashiki-gun, Kumamoto)Purpose

Implementation period

Modification works forcommunication equipment atinterconnection point

From February 14, 2020
To September 30, 2020

Other plants

Amount paid
(thousand yen)
9,700
999

Total

- 47 -

10,699